Put all of your final answers in the answer summary (in yellow) and show all your work to get to these answers in the green space below. Where the answer is zero/nil, do not write "Nil". Please write only 0 as a response where zero/nil applies. Answer summary-enter your final answers in here- in the yellow boxes: Class CCA Taken (enter as positive number) January 1, 2025 UCC 1 8 8 Separate 10 10.1 12 13 14 50 53 Effect on net income summary: (Write zero beside any option where there is no effect. Enter deductions as a negative and income inclusions as a positive) Total CCA taken 0.00 Formualized-taken from chart above Terminal loss Recapture Taxable capital gain Allowable capital loss Total Net income increase (decrease) 0.00 Formualized (sum of above) Show your work below (in the green-required for this question): The fiscal year of Chen Ltd., a Canadian public company, ends on December 31. On January 1, 2024, the UCC balances for the various classes of assets owned by the Company are as follows: Class Class 1 (4%) Asset Building UCC @ January 1, 2024 291000 Class 8 Office furniture and equipment 74000 Class 8 (separate) Photocopier 20500 Class 10 Vehicles 120500 Class 10.1 Passenger vehicles over $37,000- None 0 Class 12 Tools (Under $500 each) 6250 Class 13 Leasehold improvements 52500 Class 14 Intangible assets with limited life- none 0 Class 50 Computer hardware 20500 Class 53 Manufacturing equipment 85500
Please read all instructions carefully.
The following additions were made this year:
1. On September 15, 2024, a convertible is acquired at a cost of $66000 for use by the Vice President of the Company as a passenger vehicle.
2. Some new furniture was purchased at a cost of $15500.
3. On May 1, 2024, Chen Ltd. pays $121000 to enter a franchise agreement. The life of the franchise is 15 years.
4. On November 3, 2024, $161000 of class 53 manufacturing equipment was purchased.
5. On January 1, 2024, $43000 of leasehold improvements were made.
6. New computer hardware was purchased for $18500.
The following disposals were made this year:
1. The photocopier in the separate class 8 was disposed of for $5750. It was original purchased for $30,000.
2. Some old furniture was sold for proceeds of $8000. It was originally purchased for $12500.
3. Some computer hardware was sold for $8000. It was originally purchased on sale for $3650.
4. Some tools (from class 12) were sold for proceeds of $9600. The original cost of these tools was $12,000.
Other notes & information:
1. The Company leases a building for $15,000 per year that houses a portion of its manufacturing operations. The lease was negotiated on January 1, 2019 and has an original term of 10 years. There is one renewal option on the lease, for a period of two years. The company made $84,000 of leasehold improvements immediately after signing the lease. No further improvements were made until the current year.
2. It is the policy of the Company to deduct maximum CCA in all years.
Required: Calculate the maximum 2024 CCA that can be taken on each class of assets, the January 1, 2025 UCC balance for each class, and any other 2024 inclusions or deductions resulting from the information provided in the problem. So use the template of the second screenshot to show answes, and calculations.
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