Question: In 2 0 2 4 , Limestone Ltd . replaced a Class 8 property destroyed by a fire in May 2 0 2 3 with

In 2024, Limestone Ltd. replaced a Class 8 property destroyed by a fire in May 2023 with another Class 8 property that cost $ 510,000. Insurance proceeds of $ 302,000 were received in December 2023. The capital cost of the destroyed property was $254,000. These were the only Class 8 transactions in either 2023 or 2024. The UCC balance of Class 8 at the beginning of 2023 was $ 170 comma 000. The company has a December 31 taxation year-end. The sole shareholder of Limestone Ltd. wants to minimize the company's income tax in all years.

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