Pro-choice Ltd., which is a Canadian Controlled Private Corporation had the following balances in its records...
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Pro-choice Ltd., which is a Canadian Controlled Private Corporation had the following balances in its records concerning its capital assets as at January 1, 2021. Land. Building Equipment Leasehold improvements (see note (1), below).. Amortization Straight-line Book Value Class Nil 40 years 5 years life of lease $325,000 800,000 225,000 55,767 Equipment office.. Brick building in Cl. 3 (excluding Land) 1 8 13 CCA Cost UCC Additional Information • The Class 13 assets consist of: o Improvements to a leased office space for head office downtown, costing $95,600 in The length Nil $475,000 86,500 of the lease in 2019 was five years with an option to renew for an additional one year. • During 2021, the company had the following capital transactions: Additions: • Purchased, in June, a new concrete manufacturing building costing $2,500,000, including $825,000 for • Additional expenditures re the building: • Further renovations to leased office space, costing..... • Purchased equipment: Office equipment.. $ 54,000 • Purchased a distributing licence on March 1, 2021, for five years from a foreign manufacturing company of a related product line, cost: $260,000. Disposals: 55,767 $ 18,250 $4,225 67,000 Book value Proceeds $ 3,950 1,500,000 800,000 850,000 You have been asked to prepare a schedule for tax purposes for 2021 to reflect the above transactions and calculate the maximum write-off for tax purposes. (Ignore the effects of the replacement property rules in subsection 13(4) and the effects of leap years.) Pro-choice Ltd., which is a Canadian Controlled Private Corporation had the following balances in its records concerning its capital assets as at January 1, 2021. Land. Building Equipment Leasehold improvements (see note (1), below).. Amortization Straight-line Book Value Class Nil 40 years 5 years life of lease $325,000 800,000 225,000 55,767 Equipment office.. Brick building in Cl. 3 (excluding Land) 1 8 13 CCA Cost UCC Additional Information • The Class 13 assets consist of: o Improvements to a leased office space for head office downtown, costing $95,600 in The length Nil $475,000 86,500 of the lease in 2019 was five years with an option to renew for an additional one year. • During 2021, the company had the following capital transactions: Additions: • Purchased, in June, a new concrete manufacturing building costing $2,500,000, including $825,000 for • Additional expenditures re the building: • Further renovations to leased office space, costing..... • Purchased equipment: Office equipment.. $ 54,000 • Purchased a distributing licence on March 1, 2021, for five years from a foreign manufacturing company of a related product line, cost: $260,000. Disposals: 55,767 $ 18,250 $4,225 67,000 Book value Proceeds $ 3,950 1,500,000 800,000 850,000 You have been asked to prepare a schedule for tax purposes for 2021 to reflect the above transactions and calculate the maximum write-off for tax purposes. (Ignore the effects of the replacement property rules in subsection 13(4) and the effects of leap years.)
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