lding was constructed on March 1, 2020 at a cost of $195,000. The UCC for tax purposes (class 1) at the beginning of 2021 was $177,450.
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How can i calculate the CCA
Note 6: The following is the information relating to the fixed assets of the business.
Building: The building is 3,000 sq.m. located at 124 Main Street, Anytown, ON. A third (1/3) of the surface is used as a showroom for the customised motorcycles. The rest of the building (2/3) is used as a shop for mechanic and customization work. The building was constructed on March 1, 2020 at a cost of $195,000. The UCC for tax purposes (class 1) at the beginning of 2021 was $177,450.
Truck: The truck is a Ford F150 extended cab pick-up that James uses for both business and personal purposes – see Note 7 for operating costs. The truck was purchased on June 1, 2020 at a cost of $55,000. For tax purposes, maximum CCA was deducted in 2020 leaving a UCC balance on January 1, 2021 of
$16,500. . Is this Class 10
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- The following accounts correspond to the company Hisellav, S.A, which is dedicated to providing maintenance services. The information is relative to the year 2010 and the company asks you to help prepay its income statement and balance sheet for that year with all formality: Salaries payable 6400 public services 2900 Share capital 42,000 building depreciation 4400 income from services 76,300 materials inventory 7900 ISR 3900 trademark 17,600 loss on sale of asset 6000 promotion 15,000 providers 82,200 ESPS 14,000 interest on mortgage 13,000 sales per diem 8000 Retained earnings as of 12/31/09 19,400 clients 38,800 Accumulated depreciation building 18800 interest income 1400 Building 94,000 cash 18800 currency translation gain 3000 mortgage 26,600 rental income 10,500 rent paid in advance 1 year 42,300On March 1, K Company purchased for 4,500,000 a tract of land as factory site. An existing building on the property was razed and construction was begun on a new factory building in April. Additional data are available as follows: Cost of razing old building 300,000 Title insurance and legal fees to purchase land 200,000 Architect fee 950,000 New building construction cost 8,000,000 What is the cost of factory building?Blossom Company was organized on January 1. During the first year of operations, the following plant asset expenditures and receipts were recorded in random order. Debit 1. Cost of filling and grading the land $ 3,500 2. Full payment to building contractor 691,500 3. Real estate taxes on land paid for the current year 4,500 4. Cost of real estate purchased as a plant site (land $118,000 and building $44,000) 162,000 5. Excavation costs for new building 31,000 6. Architect’s fees on building plans 12,000 7. Accrued real estate taxes paid at time of purchase of real estate 1,000 8. Cost of parking lots and driveways 15,000 9. Cost of demolishing building to make land suitable for construction of new building 25,500 $946,000 Credit 10. Proceeds from salvage of demolished building $ 3,500 Analyze the foregoing transactions using the following column headings.…
- Garrison Company was organized on January 1. During the first year of operations, the following expenditures and receipts were recorded in random order in the account, Land. Debits Cost of real estate purchased as a plant site (land and building). $250,000 Accrued real estate taxes paid at the time of the purchase of the real estate. 4,000 Cost of demolishing building to make land suitable for construction of a new building. 15,000 Architect's fees on building plans. 14,000 Excavation costs for new building. 24,000 Cost of filling and grading the land. 5,000 Insurance and taxes during construction of building. 6,000 Cost of repairs to building under construction caused by a small fire. 7,000 Interest paid during the year, of which $54,000 pertains to the construction period. 64,000 Full payment to building contractor. 780,000 Cost of parking lots and driveways. 46,000 Real estate taxes paid for the current year on the land. 4,000 Total Debits.…A company purchased a building twenty years ago for $150,000. The building currently has an appraised market value of $235,000. The company reports the building on its balance sheet at $235,000. What concept or principle has been violated? A. separate entity concept B. recognition principle C. monetary measurement concept D. cost principleJohnson, Incorporated had the following transactions during the year: Purchased a building for $5,000,000 using a mortgage for financing Paid $2,000 for ordinary repair on a piece of equipment Sold product on account to customers for $1,500,600 Purchased a copyright for $5,000 cash Paid $20,000 cash to add a storage shed in the corner of an existing building Paid $360,000 in monthly salaries Paid $25,000 for routine maintenance on equipment Paid $110,000 for major repairs If all transactions were recorded properly, what amount did Johnson capitalize for the year, and what amount did Johnson expense for the year?
- Carla Vista Co. was organized on January 1. During the first year of operations, the following plant asset expenditures and receipts were recorded in random order. Debit 1. Excavation costs for new building $13,280 2. Architect’s fees on building plans 37,130 3. Full payment to building contractor 653,200 4. Cost of real estate purchased as a plant site (land $256,000 and building $25,800) 281,800 5. Cost of parking lots and driveways 34,020 6. Accrued real estate taxes paid at time of purchase of real estate 2,520 7. Installation cost of fences around property 7,680 8. Cost of demolishing building to make land suitable for construction of new building 33,200 9. Real estate taxes paid for the current year on land 7,190 $1,070,020 Credit 10. Proceeds from salvage of demolished building $ 12,400 Analyze the transactions using the following table column headings. Enter the…The Thompson Corporation, a manufacturer of steel products, began operations on October 1, 2016. The accounting department of Thompson has started the fixed-asset and depreciation schedule presented below. You have been asked to assist in completing this schedule. In addition to ascertaining that the data already on the schedule are correct, you have obtained the following information from the company's records and personnel (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.): Depreciation is computed from the first of the month of acquisition to the first of the month of disposition. Land A and Building A were acquired from a predecessor corporation. Thompson paid $712,500 for the land and building together. At the time of acquisition, the land had a fair value of $96,000 and the building had a fair value of $704,000. Land B was acquired on October 2, 2016, in exchange for 2,000 newly issued shares of…A consumer electronics company was formed to sell a portable handset system. The company purchased a warehouse and converted it into a manufacturing plant for $2,000,000 (including the purchase price of the warehouse). It completed the installation of assembly equipment worth $1,500,000 on December 3l. The plant began operation on January 1. The company had a gross income of $2,500,000 for the calendar year. Manufacturing costs and all operating expenses, excluding the capital expenditures, were $1,280,000. The depreciation expenses for capital expenditures amounted to $128,000.(a) Compute the taxable income of this company.(b) How much will the company pay in federal income taxes for the year?
- Buffalo Industries Inc. constructed a building and acquired five assets during the current year.Construction of Building: A building was constructed on land purchased last year at a cost of $230,400. Construction began on February 1 and was completed on November 1. The payments to the contractor were as follows. Date Payment March 1 $345,600 July 1 264,000 October 1 312,000 Buffalo obtained a $672,000, 8% construction loan on March 1. Buffalo repaid the loan on October 1. Buffalo had $384,000 of other outstanding debt during the year at a borrowing rate of 9%.Asset 1: Buffalo acquired office furniture by making a $7,200 down payment and issuing a $9,600, 2-year, zero-interest-bearing note. The note is to be paid off in two $4,800 installments made at the end of the first and second years. It was estimated that the asset could have been purchased outright for $15,552.Asset 2: Buffalo acquired manufacturing equipment by trading in used manufacturing equipment.…Swifty Company was organized on January 1. During the first year of operations, the followingplant asset expenditures and receipts were recorded in random order.Debit1. Cost of filling and grading the land $ 3,5002. Full payment to building contractor 691,5003. Real estate taxes paid for the current year on land 4,5004. Cost of real estate purchased as a plant site (land $118,000 and building$44,000)162,0005. Excavation costs for new building 31,0006. Architect’s fees on building plans 12,0007. Accrued real estate taxes paid at time of purchase of land 1,0008. Cost of parking lots and driveways 15,0009. Cost of demolishing building to make land suitable for construction ofnew building25,500$946,000Credit10. Proceeds from salvage of demolished building $ 3,500Analyze the transactions using the following table column headings. Enter the amounts in theappropriate columns. (If an amount reducesthe account balance then enter with a negative signpreceding the number, e.g. -15,000 or…When the air conditioning system is due for replacement, it is estimated that the old system will be dismantled and sold for $500,000. Depreciation is time-apportioned where appropriate. At what amount will the office building be shown in Tibet’s statement of financial position as at 31 March 20X5?