CCA-sample - Purchased car in 2010 for capital cost of...

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Purchased car in 2010 for capital cost of $30,000 A B C D= A+B-C E = ½ x (B-C) F= D – E G H = F x G I = D - H Year Beg UCC Addi tions Dispositions LCOP UCC For Year ½ Year Rule Reduced UCC CCA Rate Max CCA End UCC 2010 - $30,000 - $30,000 $15,000 15,000 30% 4,500 25,500 2011 25,500 - - 25,500 - 25,500 30% 7,650 17,850 2012 17,850 1. 17,850 - Note cumulative CCA = $12,150 2. 15,000 2,850 (terminal loss) 3. 20,000 (2,150) (recapture) 4. 40,000 LCOP = $30,000 (12,150) recapture 1. LCOP = $17,850 economic decline equals cumulative CCA, so no true required 2. LCOP = $15,000 economic decline greater than cumulative CCA, so too little CCA has been taken. “Catch up CCA” = $2,850 *** the catch up CCA is called terminal loss and the terminal loss is deducted against business income *** in order to get a terminal loss all assets in the class must be disposed of, and a positive UCC balance remains
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This note was uploaded on 11/03/2010 for the course COMM 355 taught by Professor Trancheung during the Winter '10 term at The University of British Columbia.

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