Part A 5 marks

A Class 53 asset with UCC of $950,000 on Jan 1, 2020. During 2020, eligible assets with a capital cost of $100,000 are added to the Class. There were no disposals during the year.

Required

Determine the maximum Class 53 CCA for 2020, as well as the January 1, 2021 UCC balance.

Part B 5 marks

A Class 10 (30 percent) UCC balance on January 1, 2020 of $750,000. During 2020, 10 eligible AccII cars were acquired at a cost of $25,000 each. Another vehicle with a cost of $42,000 was also acquired . During 2020 8 cars for total proceeds of $125,000. In no case did the proceeds of disposition exceed the capital cost of the vehicle being disposed of.

Required

Calculate the maximum Class 10 CCA that can BE deduct for 2020, as well as the January 1, 2021 UCC balance.