Nelson Co has a taxation year end of December 31. On January 1, 2022 the UCC of Class 8 was $80,000. A Class 8 asset with a capital cost of $70,000 was sold on May 1, 2022 for $90,000 and another Class 8 asset was purchased on May 15, 2022 for $100,000. Assuming maximum CCA is taken in 2022 and the new asset qualifies for the Accelerated Investment Incentive, the closing UCC balance is:

Nelson Co has a taxation year end of December 31. On January 1, 2022 the UCC of Class 8 was $80,000. A Class 8 asset with a capital cost of $70,000 was sold on May 1, 2022 for $90,000 and another Class 8 asset was purchased on May 15, 2022 for $100,000. Assuming maximum CCA is taken in 2022 and the new asset qualifies for the Accelerated Investment Incentive, the closing UCC balance is:

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 2BCRQ

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