Question: That's the question I need help, there is no missing information. Tradesmen Auto purchased equipment on July 31, 2009 for $250,000. In October 2011, new

That's the question I need help, there is no missing information.

Tradesmen Auto purchased equipment on July 31, 2009 for $250,000.

In October 2011, new equipment was purchased for $200,000 and the old equipment was sold for $170,000 in November of the same year.The new equipment is the only remaining asset in the asset class.

A major change in business resulted in the equipment being sold on August 31, 2013 for $225,000 and the asset class was closed.

The applicable CCA rate is 20% and tax rate is 25%.The company has a December

31st year-end.

Required:

(a) Calculate CCA claimed in each year from 2009 through 2013.

(b)For 2013, also calculate:

(i) the recapture depreciation, terminal loss, capital gains if any, that result from

the sale of the equipment

(ii) AND Calculate the After Tax Cash Flow that results from the sale in 2013

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