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) Product licence for an indefinite period $33,000 11,000 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 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

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) Product licence for an indefinite period $33,000 11,000 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 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

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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