Grantner Industries had the following Undepreciated Capital Cost (UCC) balances as of January 1, 2021: Class 1 $412,900 Class 10 $210,000 You have been given the following information: Class 1: The January 1, 2021, UCC balance in class 1 includes a single building that was acquired in 2006 for $1,100,000: $400,000 allocated to land, with the remainder to building. On May 15, 2021, the building and the land were sold for $750,000, allocated as $400,000 to land with the remainder to building. Class 10: The January 1, 2021 UCC balance represents 4 vehicles. The capital cost totaled $310,000. The vehicles were sold for total proceeds of $225,000 on October 31, 2021. Required:
Grantner Industries had the following Undepreciated Capital Cost (UCC) balances as of January 1, 2021: Class 1 $412,900 Class 10 $210,000 You have been given the following information: Class 1: The January 1, 2021, UCC balance in class 1 includes a single building that was acquired in 2006 for $1,100,000: $400,000 allocated to land, with the remainder to building. On May 15, 2021, the building and the land were sold for $750,000, allocated as $400,000 to land with the remainder to building. Class 10: The January 1, 2021 UCC balance represents 4 vehicles. The capital cost totaled $310,000. The vehicles were sold for total proceeds of $225,000 on October 31, 2021. Required:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Grantner Industries had the following Undepreciated Capital Cost (UCC) balances as of January 1, 2021:
Class 1 $412,900
Class 10 $210,000
You have been given the following information:
Class 1: The January 1, 2021, UCC balance in class 1 includes a single building that was acquired in 2006 for $1,100,000: $400,000 allocated to land, with the remainder to building. On May 15, 2021, the building and the land were sold for $750,000, allocated as $400,000 to land with the remainder to building.
Class 10: The January 1, 2021 UCC balance represents 4 vehicles. The capital cost totaled $310,000. The vehicles were sold for total proceeds of $225,000 on October 31, 2021.
Required:
Calculate the maximum Capital Cost Allowance (CCA) for the year ending December 31, 2021. Your answer should include the maximum that can be deducted for each CCA class. Also, indicate any amount of capital gains , recapture, or terminal loss that results.
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