The assets and UCC balances for K Ltd. (a public corporation) are listed below Asset UCC Balance, End of 2022 Class 1 (4%) building purchased in 2011 $100,000 Class 10 Delivery van 15,000 Class 8 Furniture and office equipment 30,000 Separate Class 8 Photocopier purchased in 2021 2,000 Class 44 Patent (purchased in 2020) 10,000 The following transactions took place in 2023: a. K Ltd. purchased $2,000 worth of small tools (each costing under $500). b. The delivery van was sold for $12,000. The original cost was $20,000. A second-hand van was purchased in the year for $16,000. c. $15,000 was paid for an air conditioning system in the building, which was added to the cost of the standard Class 1 pool. d. K Ltd. sold the photocopier for $1,500 in the year and will replace it in January 2024 with a second-hand model valued at $1,700. e. The business acquired a Class 14 franchise on March 1st of 2023 for $55,000. The franchise has a limited legal life of 20 years. (Ignore leap year effects.) Required: A) Calculate the following: 1) The total CCA that K Ltd. will be able to claim in 2023. 2) Any recapture and/or terminal

Answer rating: 100% (QA)

Calculating CCA for K Ltd in 2023 A 1 Total CCA Claimable in 2023 Heres a breakdown of the CCA claimable for each asset in 2023 Class 1 4 Building Not ... View the full answer