Mike owns two residential rental properties. Both properties are in a separate Class 1.
Mike owns two residential rental properties. Both properties are in a separate Class 1.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please help with the calculation

Transcribed Image Text:Mike owns two residential rental properties. Both properties are in a separate Class
1.
At the beginning of the year, Property A has a UCC of $824,000 and Property B has
a UCC of $936,000. In 2020, Mike added major capital improvements to Property B
for a cost of $56,000.
What is the maximum CCA available for Mike to claim?
Do not use commas or dollar signs.
Now assume that before consideration of CCA, Property A earned net rental income
of $43,000, and Property B had a net rental loss of $15,000.
What is the maximum amount of CCA Mike will be able to deduct this year?
Do not use commas or dollar signs.
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