CCA-DEMONSTRATION PROBLEM

CCA-DEMONSTRATION PROBLEM - CCA DEMONSTRATION PROBLEM CCA...

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CCA Limited, a small toy distributor, was incorporated on September 1, 20X2. Its year- end is December 31. Since incorporation, it has acquired and disposed of the following assets: 20X2 Acquisitions: Land $10,000 Brick building 50,000 Office furniture and equipment 55,000 Shelving and counters 12,000 Delivery vans – 2 @ $9,000 each 18,000 Computer (Accounting and inventory control) 5,000 Software for above computer 1,000 20X3 Acquisitions: Furniture and office equipment $ 6,000 Addition to building 24,000 20X4 Acquisitions: Delivery van traded in for $3,000 on a new truck costing $17,000 $14,000 Furniture acquired after the fire 10,000 Dispositions: 4 pieces of office furniture (costing $2,000, $2,500, $3,000, $4,000) were destroyed by fire. Insurance proceeds received were, respectively: $3,000, $2,000, $3,000, and $2,200 20X5: No acquisitions or dispositions Required: (a) Prepare a continuous CCA schedule from 20X2 to 20X5 assuming CCA Limited claims maximum CCA annually. (b) What is the tax treatment of the portion of the disposal proceeds in 20X4 which was
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This note was uploaded on 01/07/2012 for the course ACCT 4453 taught by Professor Gorman during the Spring '11 term at Dalhousie.

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CCA-DEMONSTRATION PROBLEM - CCA DEMONSTRATION PROBLEM CCA...

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