The X Manufacturing Company was incorporated in 2015.

A review of their fixed asset ledger shows the following Undepreciated Capital Cost Allowances(UCC) at the beginning of January 1^st. 2021:-

Class#1 (4%)……………………………………………………………………$49,000

Class#8 (20%)………………………………………………………………….. 8,400

Class #10 (30%)………………………………………………………………….15,000

Class#14 *…………...……………………………………………………………35,900

(*the life of the patent was 10 years)

Class#14.1 (5%)………………………………………………………………….29,,650

Class#53 (50%)………………………………………………………………..… 15,750

The Company made the following capital purchases during the year:-

-Used building to be used for manufacturing(Cl#1-MB-10%)………………….$315,000

-Manufacturing machinery (Cl#53-50%)……………………………………….... 87,000

-Tools (costing under $500 each) –(Cl#12-100%)…………………………………16,000

During the year, the company made an improvement costing $7,000 to a leased warehouse(Class #13). The 15-year lease commenced 10 years ago and has two successive options to renew for 5 years and 3 years, respectively.

Also in 2021, the Company made the following dispositions:-

Cost…………………………Proceeds………….Book Value

Equipment (Class#53)……………………………….$42,000…………………..….$11,200………………$15,000

Patent(Cl#14)… S.L.…………………………………..45,000……………………… 70,000……………… 3,500

License (Cl#14.1)……………………………………… 8,000…………………….. .. 35,000…………….. 700

Trucks*…(Cl#1030%)…………………………………19,600……………………...…1,300………………. 4,200

*(The Company decided to dispose of all its trucks and to lease its trucks going forward)

Required:-Prepare a CCA Schedule for the year ending December 31^st. 2021.

Answer rating: 100% (QA)

CCA Schedule Class 1 UCC at beginning of year 49000 Additions 315000 Dispositions 0 UCC at end of ye... View the full answer