Homework Help is Here – Start Your Trial Now!
Business
Accounting
Nelson Co has a taxation year end of December 31. On January 1, 2022 the UCC of Class 8 was $80,000. A Class 8 asset with a capital cost of $70,000 was sold on May 1, 2022 for $90,000 and another Class 8 asset was purchased on May 15, 2022 for $100,000. Assuming maximum CCA is taken in 2022 and the new asset qualifies for the Accelerated Investment Incentive, the closing UCC balance is:

Nelson Co has a taxation year end of December 31. On January 1, 2022 the UCC of Class 8 was $80,000. A Class 8 asset with a capital cost of $70,000 was sold on May 1, 2022 for $90,000 and another Class 8 asset was purchased on May 15, 2022 for $100,000. Assuming maximum CCA is taken in 2022 and the new asset qualifies for the Accelerated Investment Incentive, the closing UCC balance is:

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
Need fast answer
C3 Nelson Co has a taxation year end of December 31. On January 1, 2022 the UCC of Class 8 was $80,000. A Class 8 asset with a capital cost of $70,000 was sold on May 1, 2022 for $90,000 and another Class 8 asset was purchased on May 15, 2022 for $100,000. Assuming maximum CCA is taken in 2022 and the new asset qualifies for the Accelerated Investment Incentive, the closing UCC balance is:
Transcribed Image Text:C3 Nelson Co has a taxation year end of December 31. On January 1, 2022 the UCC of Class 8 was $80,000. A Class 8 asset with a capital cost of $70,000 was sold on May 1, 2022 for $90,000 and another Class 8 asset was purchased on May 15, 2022 for $100,000. Assuming maximum CCA is taken in 2022 and the new asset qualifies for the Accelerated Investment Incentive, the closing UCC balance is:
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS