A wholesale business with a December 31 year-end purchased new equipment on November 25, 2021, for $41,000. Before 2021, the business owned no other equipment. Required: a. What are the tax consequences if the business sells the equipment in 2023 for (a) $16,000? (b) $24,000? (c) $47,000? (Use a minus sign (-) when entering numbers that reduce UCC.) 2021 purchase 2021 CCA 2021 UCC 2022 CCA 2022 UCC 2022 UCC Situation A Less disposal Proceeds Interim UCC Balance $ 41,000 0 Ending UCC $ 0 2022 UCC Situation B Less disposal Proceeds Interim UCC Balance $ 0 Ending UCC $ 0 2022 UCC Situation C Less disposal Proceeds Interim UCC Balance $ 0 Ending UCC Capital Gain Taxable Capital gain $ 0
A wholesale business with a December 31 year-end purchased new equipment on November 25, 2021, for $41,000. Before 2021, the business owned no other equipment. Required: a. What are the tax consequences if the business sells the equipment in 2023 for (a) $16,000? (b) $24,000? (c) $47,000? (Use a minus sign (-) when entering numbers that reduce UCC.) 2021 purchase 2021 CCA 2021 UCC 2022 CCA 2022 UCC 2022 UCC Situation A Less disposal Proceeds Interim UCC Balance $ 41,000 0 Ending UCC $ 0 2022 UCC Situation B Less disposal Proceeds Interim UCC Balance $ 0 Ending UCC $ 0 2022 UCC Situation C Less disposal Proceeds Interim UCC Balance $ 0 Ending UCC Capital Gain Taxable Capital gain $ 0
Chapter17: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 45P
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Transcribed Image Text:A wholesale business with a December 31 year-end purchased new equipment on November 25, 2021, for $41,000. Before 2021,
the business owned no other equipment.
Required:
a. What are the tax consequences if the business sells the equipment in 2023 for (a) $16,000? (b) $24,000? (c) $47,000? (Use a
minus sign (-) when entering numbers that reduce UCC.)
2021 purchase
2021 CCA
2021 UCC
2022 CCA
$
41,000
2022 UCC
2022 UCC
Situation A
Less disposal Proceeds
Interim UCC Balance
$
Ending UCC
$
0
2022 UCC
Situation B
Less disposal Proceeds
Interim UCC Balance
$
0
Ending UCC
$
0
2022 UCC
Situation C
Less disposal Proceeds
Interim UCC Balance
$
0
Ending UCC
Capital Gain
Taxable Capital gain
$
0
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