In October 2013, JJ Ltd., purchased an asset for $50,000. The asset was sold in January 2015 for $30,000.   A replacement asset was purchased for $56,000 and it is now the only asset in the class.In 2017, the company sold the "new" asset in July for $34,000.  The asset was not replaced and the asset class was closed.

Assume that the firm has been in business since 2001 and has a December 31 year end, the applicable tax rate is 40% and the CCA rate is 20%.

Required:

(a) Calculate CCA claimed in each year from 2013 through 2017.

Answer rating: 100% (QA)

Determine the asset class and CCA rate The asset class in this case is not specified so well a... View the full answer