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Unformatted text preview: 15,200 Other Expenses 16,000 (40,900) Terminal Loss on Furniture: (UCC $8,000 - $5,000 Proceeds) ( 3,000 ) Income Before CCA $19,100 Maximum CCA on Buildings: McManus ($50,000 - $42,000)(5%) $ 400 George ($550,000)(5%) 27,500 West ($98,000)(4%) 3,920 Maximum possible CCA $31,820 (19,100 ) Net Rental Income Nil Note: 18 Prince Street and 4 McManus St are grouped into the same capital cost pool because each was purchased for less than $50,000. Thus, when 18 Prince Street was sold, the lower of cost or proceeds is deducted from the pool. However, there is no recapture of CCA because there remains an asset in the pool. There will be a capital gain on 18 Prince Street because it was purchased for $42,000 and sold for $60,000. Half of the $18,000 gain would be included on the income tax return....
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This note was uploaded on 02/18/2011 for the course ECON 101 taught by Professor Professor during the Spring '11 term at American University of Antigua.
- Spring '11