The following is the information relating to the fixed assets of the business.

Building: The building is 3,000 sq.m. located at 124 Main Street, Anytown, ON. A third (1/3) of the surface is used as a showroom for the customized motorcycles. The rest of the building (2/3) is used as a shop for mechanic and customization work. The building was constructed on March 1, 2020, at a cost of $195,000. The UCC for tax purposes (class 1) at the beginning of 2021 was $177,450.

Truck: The truck is a Ford F150 extended cab pick-up that James uses for both business and personal purposes – see Note 7 for operating costs. The truck was purchased on June 1, 2020, at a cost of $55,000. For tax purposes, the maximum CCA was deducted in 2020 leaving a UCC balance on January 1, 2021, of $16,500. 

Answer rating: 100% (QA)

Amount of Maximum CCA and UCC balance for each class of asset Class Number C... View the full answer