Question: thats all the question gave Question 5 (25 Marks) Designer Ltd. has a December 31 year-end. As of January 1, 2019. Designer Ltd. had the

 thats all the question gave Question 5 (25 Marks) Designer Ltd.
has a December 31 year-end. As of January 1, 2019. Designer Ltd.
thats all the question gave

Question 5 (25 Marks) Designer Ltd. has a December 31 year-end. As of January 1, 2019. Designer Ltd. had the following UCC balances for its various tangible assets: Class 8 260,000 Class 10 100,000 Other information relating to Designer Ltd.'s tangible assets is as follows: - The January 1, 2019 UCC balance in Class Ol reflected a single building that was acquired in 2015 for $ 950,000. Of that total, $ 250,000 was allocated to the land on which the building was situated. It was a new building used 50% for manufacturing and processing and 50% for office space. It was allocated to a separate Class 01. On November 13, 2019, the building and land were sold for $ 1,100,000. At the time of sale, the land was valued at $ 560,000 A new building was purchased on December 13, 2019 at a cost of 980,000, with an amount of $ 240,000 of that total being allocated to the land on which the building was situated. The new building is used 50% for manufacturing and processing and 50% for office space. It is allocated to a separate Class 01 On March 04, 2019, Designer Lid. acquired office furniture for $ 80,000. As a result of trading in furniture Designer Ltd. received a trade in allowance of $ 30,000, resulting in a net cost for the new fumiture of $ 50,000. The capital cost of the furniture that was traded in was $ 55,000. The January 1, 2019 balance in Class 10 reflects nine vehicles that were being used by Designer Lid's sales staff. Their original cost totaled $ 330,000. Designer Ltd. decided it would be more economical to provide their sales staff with leased vehicles. To this end, the nine vehicles were sold for proceeds of $ 150,000 on September 09, 2019. The amount received for each vehicle was less than its capital cost On April 10, 2019, Designer Lid. acquired a Lexus, which was used solely by the company's president. The cost of this vehicle was $ 240,000. The president drove it in 2019: 70,000 kilometres driven, of which only 10,000 kilometres involved employment duties. The president is not a shareholder of Designer Ltd. Some of Designer Ltd.'s business is conducted out of a building that is leased. The lease, which had an initial term of 6 years, can be renewed for 2 additional years at the end of the initial term. Immediately after the lease was signed on January 1, 2017. Designer Ltd spent $ 280,000 on leasehold improvements. During July, 2019, an additional 240,000 was spent upgrading this property. . During 2015, Designer Ltd. purchased two franchises. The first franchise was purchased on August 1, 2015, cost $ 62,000, and had a legally limited life of 8 years. The second franchise was purchased on October 12, 2015, cost $ 84,000, and had an unlimited life. This second franchise was sold during 2017 for $ 65,000. Designer Ltd. took maximum CEC and CCA deductions in all years. Required: Calculate Designer Ltd.'s maximum CCA for the year ending December 31, 2019. Your answer should include the maximum that can be deducted for each CCA class. In addition, indicate the amount of any recapture, terminal loss, or taxable capital gain that results from the 2019 dispositions. Question 5 (25 Marks) Designer Ltd. has a December 31 year-end. As of January 1, 2019. Designer Ltd. had the following UCC balances for its various tangible assets: Class 8 260,000 Class 10 100,000 Other information relating to Designer Ltd.'s tangible assets is as follows: - The January 1, 2019 UCC balance in Class Ol reflected a single building that was acquired in 2015 for $ 950,000. Of that total, $ 250,000 was allocated to the land on which the building was situated. It was a new building used 50% for manufacturing and processing and 50% for office space. It was allocated to a separate Class 01. On November 13, 2019, the building and land were sold for $ 1,100,000. At the time of sale, the land was valued at $ 560,000 A new building was purchased on December 13, 2019 at a cost of 980,000, with an amount of $ 240,000 of that total being allocated to the land on which the building was situated. The new building is used 50% for manufacturing and processing and 50% for office space. It is allocated to a separate Class 01 On March 04, 2019, Designer Lid. acquired office furniture for $ 80,000. As a result of trading in furniture Designer Ltd. received a trade in allowance of $ 30,000, resulting in a net cost for the new fumiture of $ 50,000. The capital cost of the furniture that was traded in was $ 55,000. The January 1, 2019 balance in Class 10 reflects nine vehicles that were being used by Designer Lid's sales staff. Their original cost totaled $ 330,000. Designer Ltd. decided it would be more economical to provide their sales staff with leased vehicles. To this end, the nine vehicles were sold for proceeds of $ 150,000 on September 09, 2019. The amount received for each vehicle was less than its capital cost On April 10, 2019, Designer Lid. acquired a Lexus, which was used solely by the company's president. The cost of this vehicle was $ 240,000. The president drove it in 2019: 70,000 kilometres driven, of which only 10,000 kilometres involved employment duties. The president is not a shareholder of Designer Ltd. Some of Designer Ltd.'s business is conducted out of a building that is leased. The lease, which had an initial term of 6 years, can be renewed for 2 additional years at the end of the initial term. Immediately after the lease was signed on January 1, 2017. Designer Ltd spent $ 280,000 on leasehold improvements. During July, 2019, an additional 240,000 was spent upgrading this property. . During 2015, Designer Ltd. purchased two franchises. The first franchise was purchased on August 1, 2015, cost $ 62,000, and had a legally limited life of 8 years. The second franchise was purchased on October 12, 2015, cost $ 84,000, and had an unlimited life. This second franchise was sold during 2017 for $ 65,000. Designer Ltd. took maximum CEC and CCA deductions in all years. Required: Calculate Designer Ltd.'s maximum CCA for the year ending December 31, 2019. Your answer should include the maximum that can be deducted for each CCA class. In addition, indicate the amount of any recapture, terminal loss, or taxable capital gain that results from the 2019 dispositions

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