AQ-CCA-Sol - ASSIGNMENT QUESTION CAPITAL COST ALLOWANCE...

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ASSIGNMENT QUESTION CAPITAL COST ALLOWANCE – ELIGIBLE CAPITAL PROPERTY SUGGESTED SOLUTION CLASS UCC ADD DEDUCT CCA(1) RECAPTURE T. LOSS UCC 11/30/07 11/30/08 1 435,000 100,000(2) 17,400 515,600 2,000 6 28,000 38,000 10,000 0 8 45,000 15,000(3) 14,000 9,000 36,900 100 8 8,000(4) 800 7,200 9 125,000 89,000 36,000 0 10 89,000 18,000 18,000 15,000 22,200 51,800 17 11,270 902 10,368 43 380,000 114,000 266,000 43 40,000(5) 6,000 34,000 10.1 30,000(6) 4,500 25,500 13 25,000 2,500 22,500 SEPARATE BUSINESS(7) 1 110,000 2,200 107,800 8 40,000 4,000 36,000 10 28,000 4,200 23,800 14 35,000 5,830(8) 29,170 Note 1 - CCA on net acquisitions is computed separately. Note 2 - ITR 1101(5b.1) prescribes a separate Class 1 for a manufacturing building acquired subsequent to March 18, 2007. However, it is unclear whether this treatment also applies to additions to buildings in existence before March 19, 2007. Note 3 - I intended this acquisition to be in excess of the $500 threshold for additions to Class 12. My original $250 amount was not increased before the problem was distributed. This treatment reflects my intended answer.
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AQ-CCA-Sol - ASSIGNMENT QUESTION CAPITAL COST ALLOWANCE...

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