Tully Advisory Inc. (Tully) operates out of two office spaces, one in Torontos west end and one
Question:
Tully Advisory Inc. (Tully) operates out of two office spaces, one in Toronto’s west end and one in Toronto’s east end. It has the following 2022 opening UCC balances: Class 1 (both buildings) 1,100,000 Class 8 146,000 Class 10 23,000 Class 10.1 11,550 Class 14.1 12,000 Class 17 5,000 Class 50 37,000 The following information is available for the 2022 fiscal year: 1) Tully demolished the East location’s parking lot, replacing it with a new permeable asphalt costing $60,000. The original parking lot cost $35,000 and represents the current balance of Class 17 (Tully does not own a parking lot at the West location). Tully also re-landscaped the green space around the East location, which cost $40,000. 2) Tully purchased $10,000 of new furniture and sold some old furniture pieces for $4,000 (original cost: $16,000). 3) Tully sold four Class 10 automobiles for $10,000 each. They had all originally cost $25,000. Two new vehicles were purchased: one for $32,000 and the other for $40,000. The other two replacement vehicles are being leased. 4) Several pieces of computer hardware were purchased for $1,500.
Required –
a) Show the activity in all UCC classes for the year. Assume Tully plans to claim the maximum CCA. Use the Accelerated Investment Incentive.
Fundamentals Of Financial Management
ISBN: 9780273713630
13th Revised Edition
Authors: James Van Horne, John Wachowicz