Tax - Ch6 Solutions

Tax - Ch6 Solutions - Income tax reference: ITA 13(21),...

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QUESTION TWO In the current year, Decrease Ltd. purchased class 8 equipment costing $20,000. Later in the year, Decrease Ltd. sold other class 8 equipment for $30,000. The equipment sold originally cost $108,000.At the beginning of the current year, the class 8 UCC balance was $42,000. Calculate the maximum CCA deduction for Class 8 for the current year.
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Unformatted text preview: Income tax reference: ITA 13(21), 20(1)(a); Reg. 1100(1), (2). KC 6-2 [ITA: 13(21), 20(1)(a); Reg. 1100(1),(2) Disposals exceed Additions] Class 8 UCC balance, beginning of year Purchases Disposals CCA: $32,000 x 20% UCC balance, end of year $42,000 $20,000 (30,000) (10,000) 32,000 (6,400) $25,600...
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This note was uploaded on 12/28/2011 for the course TAX 101 taught by Professor Mcgregor during the Fall '07 term at Wisc La Crosse.

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