Required: Complete the table below using the given information. (If an item is not relevant, leave blank. Use a minus sign (-) when entering numbers that reduce UCC.) UCC, beginning of year Add Purchases Less Disposal Recapture Less CCA Ending UCC Business income: Recapture Less: CCA Net Increase (decrease) to business income Taxable Capital Gain (allowable capital loss) $ $ $ $ $ Class 1 Building 0 Class 8 Furniture 220,000 $ 209,000 $ $ (286,000) Class 14.1 Intangible License (2,640) (68,640) $ 209,000 $ Class 53 Manufacturing equipment 0 $ 11,000 $ 11,000 $ 0 33,000 33,000
Required: Complete the table below using the given information. (If an item is not relevant, leave blank. Use a minus sign (-) when entering numbers that reduce UCC.) UCC, beginning of year Add Purchases Less Disposal Recapture Less CCA Ending UCC Business income: Recapture Less: CCA Net Increase (decrease) to business income Taxable Capital Gain (allowable capital loss) $ $ $ $ $ Class 1 Building 0 Class 8 Furniture 220,000 $ 209,000 $ $ (286,000) Class 14.1 Intangible License (2,640) (68,640) $ 209,000 $ Class 53 Manufacturing equipment 0 $ 11,000 $ 11,000 $ 0 33,000 33,000
Chapter17: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 5BCRQ
Related questions
Question
9
Transcribed Image Text:Maple Enterprises Ltd., a public corporation, has always claimed maximum CCA. The following information relates to the corporation's
capital transactions:
1. The undepreciated capital cost of certain CCA classes at the end of the previous taxation year was as follows.
Class 1 $220,000 (one building in class)
Class 8 209,000
2. In 2023, the company expanded into the manufacturing business by purchasing the following assets.
Equipment (manufacturing)
$33,000
11,000
Product licence for an indefinite period
3. The building was sold in 2023 for $286,000 (original cost-$253,000).
4. During 2023, the company purchased office furniture for $15,400.
Required:
Complete the table below using the given information. (If an item is not relevant, leave blank. Use a minus sign (-) when entering
numbers that reduce UCC.)
UCC, beginning of year
Add Purchases
Less Disposal
Recapture
Less CCA
Ending UCC
Business income:
Recapture
Less: CCA
Net Increase (decrease) to business income
Taxable Capital Gain (allowable capital loss)
$
$
$
Class 1
Building
0
220,000 $ 209,000 $
(286,000)
Class 8
Furniture
(2,640)
(68,640)
Class 14.1
Intangible
License
209,000 $
Class 53
Manufacturing
equipment
0
$
11,000 $
11,000 $
33,000
33,000
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