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# Image (6) - ART B{15 marks EACH QUESTION IS WORTH 3 MARKS...

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Unformatted text preview: ART B {15 marks) EACH QUESTION IS WORTH 3 MARKS. PROVIDE A SHORT CALCULATION OR ANSWER FOR EACH OF THE FOLLOWING QUESTIONS. ' U l.) Calculate the 2005 capital cost allowance deductible in the year for a \$50,000 passenger vehicle acquired on June 1, 2005 by XYZ Ltd. XYZ Ltd. was incorporated April 30‘”. 2005 and has a December 315‘ year end. What would automobile beneﬁt he to an individual who used the vehicle 70% of the time for business purposes? Personal kilometers for the period were 15.000 for the individual and the company paid all operating costs which totaled 38,000. If the corporate tax rate was 20% and the individual tax rate was 40% in 2005, would it make sense for the individual to purchase the car with the assistance of a 0% loan from the corporation? The prescribed rate of interest was 5% on employee loans. In 2000, Mr. Wye leased a store for a period of 5 years, with 2 options to renew for an additional time period. 3 years — 151 option, and 2 years beyond additional 3 years — 2’“1 option. He spent \$8,000 in putting in store ﬁxtures in year 2000.1’11} ye'ar lqgm_ spent an additional ,\$5,0_09__ remodeling the store, In 2005 he spent \$9,000 on leaseholds and sold ﬁxtures purchasedTﬁ year ZOOWW Determine Mr. Wye’s maximum CCA claim for leasehold in 2005. 00 ~ {35¢ ”a?“ V} d‘ i h T ”l’“'” "~ LL“ 2’.- 1 51:6 5 (:23 , '3}? c ~41" ! 3 U. 3 ‘1 _- ,. t 5%: - ~ ' 2 ' 5 " Ulla/t _ _. T C“) j eveoix Vi . j if V 3 2;; 6‘ ...
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