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A business sold an old passenger vehicle that had an original cost of $25,000, undepreciated capital cost (UCC) of $10,000 and was sold for $8,000. No other vehicles were in the pool. The new passenger vehicle cost $35,000. What would be the maximum deduction that would be claimed in the year?

A business sold an old passenger vehicle that had an original cost of $25,000, undepreciated capital cost (UCC) of $10,000 and was sold for $8,000. No other vehicles were in the pool. The new passenger vehicle cost $35,000. What would be the maximum deduction that would be claimed in the year?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A business sold an old passenger vehicle that had an original cost of $25,000, undepreciated capital cost (UCC) of $10,000 and was sold for $8,000. No other vehicles were in the pool. The new passenger vehicle cost $35,000. What would be the maximum deduction that would be claimed in the year?
Transcribed Image Text:A business sold an old passenger vehicle that had an original cost of $25,000, undepreciated capital cost (UCC) of $10,000 and was sold for $8,000. No other vehicles were in the pool. The new passenger vehicle cost $35,000. What would be the maximum deduction that would be claimed in the year?
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