Imco LLP (Imco), is a publicly listed manufacturing company with a December 31 year end. You have

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Question:

Imco LLP (Imco), is a publicly listed manufacturing company with a December 31 year end. You have been asked to determine the CCA claim and any recapture or terminal losses associated with the company's depreciable capital assets for the year ended December 31, 2021. You have been provided with the following information:

On January 1, 2021, the undepreciated capital cost (UCC) for each class of assets was as follows:

Class 1 - building acquired in 2004: $196,000 Class 5 building: $36,000

Class 8 office furniture and equipment: $127,200 Class 10 Delivery vehicles: $145,000 Class 14 - Franchise: 17,681 Class 14.1 - Customer list: $14,160

Class 50 - Computer equipment: $83,400 Class 53 Manufacturing Equipment: $nil

The Class 5 building, which cost $180,000, was sold in the year for $45,000 during 2021. This building was on leased land.

Imco purchased a new building with land in the year for $426,000 with $200,000 of the cost allocated to the land. The building is used 92% for manufacturing purposes and 8% for administrative activities of Imco.

During 2021, Imco sold furniture with an original cost of $68,500 for $49,500 and purchased new office furniture costing $38,900.

In September of 2021, Imco traded in an old delivery truck which had originally cost $38,000. It paid $33,200 net of a trade in value of $10,500 for the old delivery truck to acquire the new delivery truck.

Class 14 includes a franchise that as granted in 2018 for 8 years. The original price paid was $24,600.

The only asset in Class 14.1 is a customer list that was purchased in 2018 for $18,300.

During the year, a new computer was acquired for $12,800. That cost included $600 for applications software and $1,200 for systems software.

Manufacturing equipment was acquired and available for use in the year for $68,700.

Required:

Assume Imco makes separate class elections where allowed. Determine the maximum capital cost allowance (CCA) deduction for Imco for the year. Show opening and ending UCC as well as any additions and disposals, CCA, terminal losses, recapture, and capital gains that result from the information provided.