Suppose you buy 850 shares of Applied Materials Corporation at the beginning of year 1 for $45.75 per share. Applied Materials Corporation pays no dividends. The stock price at the end of year 1 is $49.75, the price is $57.75 at the end of year 2, and the price is $65.75 at the end of year 3. The stock price declines to $62.75 at the end of year 4, and you sell your 850 shares.

What is your geometric average return for the 4-year period? (Round your answer to 2 decimal places. Do not round intermediate calculations.)

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Scenario C (use half year rule) C-Me-Learn Ltd. is a tutoring company which leases its space and had the following UCC balances at the beginning of the 2021 year: $16,000 21,000 Class 8 Class 50 In November 2021, it decided that its premises and furniture needed an upgrade. It sold all the current furniture, which originally cost $45,000 for proceeds of $10,000. It also spent $80,000 in leasehold improvements, which were finished on December 28, 2021. New furniture will be purchased early in the new year. The lease agreement began on January 1, 2019, and has a 5-year term. It is renewable for another 5-year term, followed by a final 3-year term. Question 1 Calculate the maximum CCA and ending UCC balances for all related CCA classes in each of the scenarios below. Assume each company has a December 31st year end. Scenario A (use Accll rules) A-Star Co. has the following UCC balances at the beginning of the year: Class 1 (no special elections made) $108,000 60,000 95,000 $1,000 Class 8 Class 10 Class 12 During the year, A-Star purchased $50,000 of new Class 8 items and $10,000 of new Class 10 items. It disposed of the following: Proceeds on CCA Class Class 8 Capital Cost $20,000 $35,000 $2,000 disposition $10,000 $16,000 $2,500 Class 10 Class 12 Scenario B (use half year rule) BakerStreet Ltd., a baked goods catering company began operations on August 1. It purchased three (3) non-electric passenger vehicles for $50,000 each, and a $500,000 building. Kitchen appliances costing $15,000 were also purchased, along with various kitchen utensils costing less than $500 each, totalling $3,000. Its incorporation fees were $4,000. Scenario C (use half year rule) C-Me-Learn Ltd. is a tutoring company which leases its space and had the following UCC balances at the beginning of the 2021 year: $16,000 21,000 Class 8 Class 50 In November 2021, it decided that its premises and furniture needed an upgrade. It sold all the current furniture, which originally cost $45,000 for proceeds of $10,000. It also spent $80,000 in leasehold improvements, which were finished on December 28, 2021. New furniture will be purchased early in the new year. The lease agreement began on January 1, 2019, and has a 5-year term. It is renewable for another 5-year term, followed by a final 3-year term. Question 1 Calculate the maximum CCA and ending UCC balances for all related CCA classes in each of the scenarios below. Assume each company has a December 31st year end. Scenario A (use Accll rules) A-Star Co. has the following UCC balances at the beginning of the year: Class 1 (no special elections made) $108,000 60,000 95,000 $1,000 Class 8 Class 10 Class 12 During the year, A-Star purchased $50,000 of new Class 8 items and $10,000 of new Class 10 items. It disposed of the following: Proceeds on CCA Class Class 8 Capital Cost $20,000 $35,000 $2,000 disposition $10,000 $16,000 $2,500 Class 10 Class 12 Scenario B (use half year rule) BakerStreet Ltd., a baked goods catering company began operations on August 1. It purchased three (3) non-electric passenger vehicles for $50,000 each, and a $500,000 building. Kitchen appliances costing $15,000 were also purchased, along with various kitchen utensils costing less than $500 each, totalling $3,000. Its incorporation fees were $4,000.