The following information relates to Magenta Corporation for its taxation year that ends on December 31,...
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The following information relates to Magenta Corporation for its taxation year that ends on December 31, 2019: 1. The Company has UCC balances on January 1, 2019 for its tangible assets as follows: Class 1 Building (6%) (A single building acquired in 2009) Class 8 Furniture (20%) $191,478 97,200 Class 10 Vehicle (30%) 50,400 Class 13 Leasehold Improvements (SL) 51,000 2. During 2019, the building that was acquired in 2010 was sold for cash of $210,000. The building had a capital cost of $218,000. During 2019, the Company purchased office furnishings for $29,600. They sold furnishings and received $6,800. The capital cost of the furnishings that were traded in was $22,400. The only vehicle purchased during the year was a Lexus to be used by the CFO of the Company. The cost of this car was S77,000. 3. 4. 4. Magenta Corporation leases additional office space for its operations. The lease was signed on January 1, 2016 and had an initial term of 7 years. It has an option to renew for 3 years. At the time the lease was signed, Magenta Corporation spent $60,000 on leasehold improvements. REQUIRED: A) Calculate the maximum CCA that can be deducted for 2019. maximum that can be deducted for each CCA cass. B) Calculate next year's beginning UCC balance for each class. c) Indicate if there are any tax consequences that result from dispositions during 2019. Your answer should incluude the The following information relates to Magenta Corporation for its taxation year that ends on December 31, 2019: 1. The Company has UCC balances on January 1, 2019 for its tangible assets as follows: Class 1 Building (6%) (A single building acquired in 2009) Class 8 Furniture (20%) $191,478 97,200 Class 10 Vehicle (30%) 50,400 Class 13 Leasehold Improvements (SL) 51,000 2. During 2019, the building that was acquired in 2010 was sold for cash of $210,000. The building had a capital cost of $218,000. During 2019, the Company purchased office furnishings for $29,600. They sold furnishings and received $6,800. The capital cost of the furnishings that were traded in was $22,400. The only vehicle purchased during the year was a Lexus to be used by the CFO of the Company. The cost of this car was S77,000. 3. 4. 4. Magenta Corporation leases additional office space for its operations. The lease was signed on January 1, 2016 and had an initial term of 7 years. It has an option to renew for 3 years. At the time the lease was signed, Magenta Corporation spent $60,000 on leasehold improvements. REQUIRED: A) Calculate the maximum CCA that can be deducted for 2019. maximum that can be deducted for each CCA cass. B) Calculate next year's beginning UCC balance for each class. c) Indicate if there are any tax consequences that result from dispositions during 2019. Your answer should incluude the
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A The maximum allowable CCA is as under Class CCA Deduction Amount Class 1 0 Class 8 21040 Class 10 ... View the full answer
Related Book For
Financial Accounting An Introduction to Concepts, Methods and Uses
ISBN: 978-1133591023
14th edition
Authors: Roman L. Weil, Katherine Schipper, Jennifer Francis
Posted Date:
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