Quest Tracy Trent owns a rental property. She purchased the land for $200,000 and built the...

 

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Quest Tracy Trent owns a rental property. She purchased the land for $200,000 and built the building for $300,000 (Class 1-6%). 1) In Year 5, the beginning UCC of the building was $241,700. Calculate the CCA for the year. 2) In Year 6, she spent $50,000 on renovation, assuming accelerated CCA rule applies, calculate the CCA for the year. (hint: consider the data in 1) as well) 3) In Year 7, she sold the rental property for $1,000,000 (land $400,000; building $600,000). Calculate the capital gain or loss for both land and building. Calculate the recapture or terminal loss, if any. . . Please round the calculations to the nearest dollar. Quest Tracy Trent owns a rental property. She purchased the land for $200,000 and built the building for $300,000 (Class 1-6%). 1) In Year 5, the beginning UCC of the building was $241,700. Calculate the CCA for the year. 2) In Year 6, she spent $50,000 on renovation, assuming accelerated CCA rule applies, calculate the CCA for the year. (hint: consider the data in 1) as well) 3) In Year 7, she sold the rental property for $1,000,000 (land $400,000; building $600,000). Calculate the capital gain or loss for both land and building. Calculate the recapture or terminal loss, if any. . . Please round the calculations to the nearest dollar.

Answer rating: 100% (QA)

To calculate the Capital Cost Allowance CCA for the building in Year 1 and the capital gain or recap... View the full answer