Question: Hello, I needed assistance with Problem Five-2 I am not understanding it, thank you. mining your sold Subsequent taxation years. Assignment Problem Five - 2
Hello, I needed assistance with Problem Five-2
I am not understanding it, thank you.
mining your sold Subsequent taxation years. Assignment Problem Five - 2 On January 2. 2020, Carlson Manufacturing had the following UCC balances: (CCA Calculations) $462,000 82.000 Class 53 142,000 Class 50 16,500 Class 10 102,000 Class 10.1 96.000 Class 13 326,000 Class 8 Class 3 Other information related to the company's depreciable assets is as follows: 1. During 2020, the company acquired additional manufacturing and processing egg ment at a cost of $105,000. 2. During 2020, there were additions to Class 50 with a capital cost of $15,600. 3. During 2020, three passenger vehicles were acquired at a cost of $22,000 each. In ads tion, a delivery van with a capital cost of $43,000 was sold for $21,000. 4. The only asset in Class 10.1 was the CEO's $462,000 Bentley. Because of public rez tions concerns with such an extravagant vehicle, the car was sold during 2020 $283,000. 5. The January 1, 2020, balance in Class 13 reflected improvements that were made in 2018, the year in which the lease commenced. These improvements were made on ; property leased as office space for the company's executives. The basic lease term is tor eight years, with an option to renew for a period of two years. Additional improvement costing $52,000, were made during 2020. 6. During 2020, the company acquired Class 8 assets at a cost of $146,000. Class B asses with a capital cost of $85,000 were sold for proceeds of $56,000. None of the individual assets sold had proceeds that exceeded their individual capital cost. 7. During 2020, one of the buildings in Class 3 burned to the ground. It had a capital cost of $285,000, The insurance proceeds totaled $310,000 B. During 2020, a new factory building was acquired at a cost of $1,327,000. The estimated value of the land included in the purchase price is $270,000. The building will be used 100 percent for manufacturing and processing activity. It will be allocated to a separate class Carlson Manufacturing always takes maximum CCA on each Class of depreciable assets. Required: Calculate the maximum CCA that can be taken by Carlson Manufacturing on each class of assets for the year ending December 31, 2020, and calculate the UCC for each class of assets on January 1. 2021. In addition, determine the amount of any cap of any capital gain, recapture or terminal loss that arises. Ignore GST/HST/PST considerations and the replacement propel: rules that are covered in Chapter 8. Assignment Problem Five - 3 (CCA Calculations Over 5 Years) Golden Dragon Lid. begins operations in Vancouver on September 1, 2015. These operation include an elegant sit down restaurant specializing in northern Chinese cuisine. a out operation that provides home delivery throughout the city. To facilitate this latter operate