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Unformatted text preview: .pital cost allowance for class 13 assets are calculated using the declining balance .lethod orthe straight line method as long as it is the same method used to calculate depreciation for the financial statements. / ‘51 True Or ffiFalsefj-r \/ \‘1 _- 2 III}. A corporation with a June 30 year end begins its ope\l"atior{s on January 1, 2004. It has acquired $50,000 of Class 14 assets on January 1. The maximum CCA for its fiscal year ending June 30, 2004 is $5,000 if the legal life otthe assets are 10 years. /hd l1. «35:99 +33 .- 9500 Trolle Or False / .. ,a _ . 2 \b 'v p _ . 5,, ‘ , l, i a L‘L‘ll- ll.’ N1F~AA$I r; [U ”g I), ,— 12. Small tools of $200 are purchased in the year. CCA claim in the year is $100. True Or False 1 2 / «(3512 1 31¢“? 15% ; u m; x Ty, : ans-ac; _ . 13. Goo Will 15 purchased for $60,0 0 dunng the year. The maximum goodwill amortlzatlon that cah be deducted for tax purposes for the year is $1,575. True Or False 1 2 / w—u 14. An individual purchased a warehouse as an investment property two years ago. During the current year he received rents of $12,000 and paid the following expenses: interest of $8,000, property taxes of $3,000, heat. light and power of $500 and maintenance of $300. The undepreciated capital cost of this Class 1 asset was $60,000 on January 1 of‘ D, V J the current year. The maximum Class 1 CCA claim is $200. ‘ . .fi" _, ‘§_f}‘;i , . » - True Or False - i/ _ 1 2 a . \, 15. A construction company gifts a house with a fair market value of $100,000 to 100% shareholder of the corporation for no consideration. The shareholder is liable for tax on the $100,000 and corporation can deduct the cost as an expense. . . v 3r True" 0 Fals " \" Rp- = 16. .. The Shafier’s paid $1,000 in legal fees to sell their Prince George home and $800 in \—-’ ’ legal fees to buy their new home in Red Deer. The total $1,800 in legal fees is a deductible moving cost. _,A , - '_ , r False \/ f k . . 2 4g? ,- 5 t.“ , /:‘ 17. The new employer reimburses the Shaff'el’s—fo/r the loss on the sale of the Prince George home. The reimbursement of $40,000 is taxable to the Shafier’s. True Or , 1 2 , / 3. The $5,000 in mortgage interest incurred while selling their Prince George house V is a deductible moving cost. -_ _ V ‘ . True \O False 1 2 \\_/’ txiq ...
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