244 Chapter 5 Assignment Problems Assignment Problem Five -5 (CCA Calculations Over 3 Years) Bob's Buttons is an unincorporated business that began operations on September 1, 2015 The owner/operator is Bob Pope and his business is selling decorative and promotional buttons to various clients throughout the city of Toronto and online. Clients include political parties, retail and online stores, sports teams, and various religious organizations. When he began operations in 2015, he acquired the following assets: A building to house his operations. The total cost of the building was $862,000, includin an estimated $220,000 for the land. The building is used exclusively for his business, wit 92 percent of the space being used for manufacturing the buttons. The building is allo- cated to a separate Class 1 Furniture and fixtures with a cost of $120,000. Two customized delivery vehicles at a cost of $36,000 each. Bob's business policy is to take maximum CCA. During 2016, the following transaction involving capital assets take place As the business has enjoyed early success, on April 1, Bob purchases a $110,000 Lexus. He has large logos of the business painted on both sides of the vehicle. Since Bob inher ited a Jeep, a Ferrari and a BMW motorcycle, he drives the Lexus 100 percent for business purposes. The business acquires four new delivery vehicles at a cost of $38,000 each. As part of thi purchase, the two vehicles acquired in 2015 are traded in. An allowance of $21,000 is received for each vehicle 12 As Bob believes in free speech and has been told repeatedly by his family that he has a ve twisted sense of humour, some of his favourite buttons have created social media firestorms. After Bob receives death threats, he decides to terminate his business in 2017 and start a n home security business in Alberta. By proceeds are as follows: ew December 31, 2017 all of the assets are sold. The Building The building is sold for $903,000, with $220,000 of this value allocated to the land on which the building is situated. Furniture And Fixtures These assets are sold for $53,000. Delivery Vehicles The four delivery vehicles are sold for $34,000 each Lexus The Lexus is sold for $62,000 Required: Determine the maximum CCA that can be taken in each of the years 2015 through 2017. In your calculations, include and identify the UCC balances for January 1 2016, January 1, 2017, and January 1, 2018.0 In addition, indicate any tax effects resulting from the 2016 and 2017 dispositions. Ignore GST/HST consideration