Suppose your firm is considering buying a van costing $95,000. What is the Undepreciated capital cost (UCC) for the van after Five years. Note: the van falls in class 10 with a 30 percent CCA rate. Use the tabular approach when calculating the UCC after Five years. a) Calculate the UCC at the end of year 5 b) If the Van is sold at $4500 at the end of 5 years, what is the tax implication? what name is assigned to this tax implication? c) If the Van is sold at $55,000 at the end of 5 years, what is the tax implication? what name is assigned to this tax implication?
Suppose your firm is considering buying a van costing $95,000. What is the Undepreciated capital cost (UCC) for the van after Five years. Note: the van falls in class 10 with a 30 percent CCA rate. Use the tabular approach when calculating the UCC after Five years. a) Calculate the UCC at the end of year 5 b) If the Van is sold at $4500 at the end of 5 years, what is the tax implication? what name is assigned to this tax implication? c) If the Van is sold at $55,000 at the end of 5 years, what is the tax implication? what name is assigned to this tax implication?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Suppose your firm is considering buying a van costing $95,000. What is the Undepreciated capital cost (UCC) for the van after Five years. Note: the van falls in class 10 with a 30 percent CCA rate. Use the tabular approach when calculating the UCC after Five years.
a) Calculate the UCC at the end of year 5
b) If the Van is sold at $4500 at the end of 5 years, what is the tax implication? what name is assigned to this tax implication?
c) If the Van is sold at $55,000 at the end of 5 years, what is the tax implication? what name is assigned to this tax implication?
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