CCA handout.docx - TAXX 2202 \u2013 Capital Cost Allowance Rupert co incorporated on March 1 2017 The company has a December 31 year end and deducted the

CCA handout.docx - TAXX 2202 u2013 Capital Cost Allowance...

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TAXX 2202 – Capital Cost Allowance Rupert co. incorporated on March 1, 2017. The company has a December 31 year end and deducted the maximum CCA each year. On April 1, 2017, the Company acquired a new building for its operations at a cost of $619,000. Of this total, $510,000 is allocated to the building and $109,000 to the land. The building is being used 100 percent for non-residential purposes. Furnishings for the building are acquired on April 15, 2017 at a cost of $160,000. Also on April 15, 2017 the Company acquires four vehicles to be used in its delivery operations. The cost of these vehicles is $45,000 each (total $180,000). During 2018, the Company trades in two of its old vehicles for electric vehicles. The replacement vehicles cost $61,000 each. The company receives a trade-in-allowance of $23,000 for each old vehicle. Also during the year, the company acquires a luxury vehicle to be used by the company’s CEO.
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