3. The following information relates to the Fortin Ltd.'s depreciable properties, Fortin's taxation yearend is December 31. Class 8 - The January 1, 2023 UCC balance was $346,000. In 2023, the Company purchased additionalClass 8 property for $105,000 and sold Class 8 property with a capital cost of $83,000 for $75,000. CCArate 20%. Eligible for Accll.Class 10 - The January 1, 2023 UCC balance was $150,000. In 2023, 3 delivery vans were purchased for$25,000 each and a delivery van with a capital cost of $42, 000 was sold for $ 18,000. CCA rate 30%. Eligible for Accli. Fortin Aluminum always claims maximum CCA on each Class of depreciable property.Required: Calculate the maximum CCA that can be claimed by Fortin for each class of property for its2023 taxation year and determine the UCC for each class as of January 1, 2024.

SWFT Individual Income Taxes
43rd Edition
ISBN:9780357391365
Author:YOUNG
Publisher:YOUNG
Chapter17: Property Transactions: § 1231 And Recapture Provisions
Section: Chapter Questions
Problem 37P
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3. The following information relates to the Fortin Ltd.'s depreciable properties, Fortin's
taxation yearend is December 31. Class 8 - The January 1, 2023 UCC balance was $346,000.
In 2023, the Company purchased additionalClass 8 property for $105,000 and sold Class 8
property with a capital cost of $83,000 for $75,000. CCArate 20%. Eligible for Accll.Class
10 - The January 1, 2023 UCC balance was $150,000. In 2023, 3 delivery vans were
purchased for$25,000 each and a delivery van with a capital cost of $42, 000 was sold for $
18,000. CCA rate 30%. Eligible for Accli. Fortin Aluminum always claims maximum CCA on
each Class of depreciable property.Required: Calculate the maximum CCA that can be claimed
by Fortin for each class of property for its2023 taxation year and determine the UCC for each
class as of January 1, 2024.
Transcribed Image Text:3. The following information relates to the Fortin Ltd.'s depreciable properties, Fortin's taxation yearend is December 31. Class 8 - The January 1, 2023 UCC balance was $346,000. In 2023, the Company purchased additionalClass 8 property for $105,000 and sold Class 8 property with a capital cost of $83,000 for $75,000. CCArate 20%. Eligible for Accll.Class 10 - The January 1, 2023 UCC balance was $150,000. In 2023, 3 delivery vans were purchased for$25,000 each and a delivery van with a capital cost of $42, 000 was sold for $ 18,000. CCA rate 30%. Eligible for Accli. Fortin Aluminum always claims maximum CCA on each Class of depreciable property.Required: Calculate the maximum CCA that can be claimed by Fortin for each class of property for its2023 taxation year and determine the UCC for each class as of January 1, 2024.
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