January Smith purchased a fancy car, a Ferrari, for $70,000 and claimed CA over time in Class 10.1. Her opening UCC balance for the current year was $25,000 and she sold the car for $30,000. She has no other pieces of equipment in that pool. Calculate the total impact on her taxable income.

January Smith purchased a fancy car, a Ferrari, for $70,000 and claimed CA over time in Class 10.1. Her opening UCC balance for the current year was $25,000 and she sold the car for $30,000. She has no other pieces of equipment in that pool. Calculate the total impact on her taxable income.

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter6: Losses And Loss Limitations

Section: Chapter Questions

Problem 31P

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Question

January Smith purchased a fancy car, a Ferrari, for $70,000 and claimed CA over
time in Class 10.1. Her opening UCC balance for the current year was $25,000 and
she sold the car for $30,000. She has no other pieces of equipment in that pool.
Calculate the total impact on her taxable income.

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