company purchased several pieces of equipment for a total of $ 60,000 on January 1, 2019, which is the first day of business • Depreciation method is straight-line over 5 years with no residual value • On June 1, 2021, the company sold one piece of equipment with an original cost of $ 14,000, purchased on January 1, 2019, for proceeds of $ 2,000 • On July 1, 2021, the company sold another piece of equipment with the original cost of $ 11,000, purchased on January 1, 2019, for proceeds of $ 13,000 For simplicity assume the company takes a full year depreciation in the year acquired and none in the year of disposal the company claimed CCA of $ 11,000 in 2019, $ 15,000 in both 2020 and 2021 on remaining assets in the “pool” Required to Calculate the NBV and UCC at the end of 2019, 2020, and 2021.
company purchased several pieces of equipment for a total of $ 60,000 on January 1, 2019, which is the first day
of business
•
• On June 1, 2021, the company sold one piece of equipment with an original cost of $ 14,000, purchased on January 1, 2019, for proceeds of $ 2,000
• On July 1, 2021, the company sold another piece of equipment with the original cost of $ 11,000, purchased on January 1, 2019, for proceeds of $ 13,000
For simplicity assume the company takes a full year depreciation in the year acquired and none in the year of disposal the company claimed CCA of $ 11,000 in 2019, $ 15,000 in both 2020 and 2021 on remaining assets in the “pool”
Required to Calculate the NBV and UCC at the end of 2019, 2020, and 2021.
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