Final Exam Review Questions.pdf - Chapter 5 Business Reserve Chapter 6 CCA Over 3 Years Shawarma Palace Ltd was incorporated on January 1 2018 In

Final Exam Review Questions.pdf - Chapter 5 Business...

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Chapter 5: Business Reserve
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Chapter 6: CCA Over 3 Years Shawarma Palace Ltd. was incorporated on January 1, 2018. In addition to operating a luxury restaurant featuring the cuisine of Lebanon, the Company also offers delivery of its famous shawarmas. The Company has a December 31 year end and deducts the maximum CCA each year. On February 15, 2018, the Company acquires a new building for its operations at a cost of $750,000. Of this total, $500,000 is allocated to the building and $250,000 to the land. The building is being used 100 percent for non-residential purposes of which about 25 percent is classified as manufacturing and processing (the preparation of food and drinks). It is allocated to a separate Class 1. Furnishings for the building are acquired on March 1, 2018 at a cost of $225,000. Also on March 1, 2018, the Company acquires 10 vehicles to be used in its delivery operations. The cost of these vehicles is $27,000 each for a total of $270,000. During 2019, the Company trades in 4 of its old vehicles for more fuel efficient vehicles. The replacement vehicles cost $29,000 per vehicle. The company receives a trade-in allowance of $21,000 for each old
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