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Module 5 CCA Exercise Solutions

The document contains accounting information for various asset classes including opening balances, additions, disposals, and calculations of capital cost allowance. Information on sales of assets is also provided, including whether a capital loss can occur. A query is included regarding reporting a loss on sale of a building.

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hoda
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57 views

Module 5 CCA Exercise Solutions

The document contains accounting information for various asset classes including opening balances, additions, disposals, and calculations of capital cost allowance. Information on sales of assets is also provided, including whether a capital loss can occur. A query is included regarding reporting a loss on sale of a building.

Uploaded by

hoda
Copyright
© © All Rights Reserved
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Class Opening

UCC
M&P1 290000

Other 1

8 97000

10 75000

13

50 240000

53 630000

Class 13 each expenditure separately


Improvement
remaining life in
lease + renewal
3(b) vehicle Annual amount
POD 16000
ACB 24000 first year
O&E 0
0
cannot have a capital
loss on depreciable
property
Deduct: Recapture TermLoss
lesser of J + K - L occurs occurs (K - L, if any) M + P QxR
cost or when M when all divide by 2
proceeds is negative assets gone
Additions Dispositions Revised Recapture Terminal AccII Adjusted CCA CCA
UCC Loss UCC Rate claimed
290000 0 290000 10% 29000

275000 275000 137500 412500 6% 24750

97000 0 97000 20% 19400

30000 16000 89000 7000 96000 30% 28800

140000 140000 70000 210000 *s/l 30000

90000 330000 45000 375000 55% 206250

630000 0 630000 50% 315000


CCA expensed 653200

each expenditure separately


Improvement 140000
remaining life in
lease + renewal 7
Annual amount 20000
AccII x 1.5
30000
M-S

Ending
UCC
261000

250250

77600

60200

110000

123750

315000
Deduct: Recapture TermLoss
lesser of occurs occurs
cost or when E when all
proceeds is negative assets gone
Class Opening Additions Dispositions Revised Recapture Terminal AccII
UCC UCC Loss 1/2 yr rule
1 75264 80000 -4736 4736
10 0 24,500 24500 12250
17 7065 7000 65 -65
4736 -65
business business
income expense
3 a) 3 a)
Adjusted CCA CCA Ending
UCC Rate claimed UCC
0 6% 0 0
36750 30% 11025 13475
0 8% 0 0
11025
business
expense
3 a)
Beginning
Class UCC Additions
1 115,000
8 40,000
10 50,000 12,000
10.1 8,000
10.1 30,000
14 3,974
13 100,000

Class 14 Calculate daily CCA rate

Reconciliation Schedule (partial)


Accounting Net Income
Add: Recapture
Amortization
Loss on disposition of ass

Assets sold
Building Class 8
POD 150000 4000
ACB 275000 4500
Cannot have a capital loss on a deprecia

Query for client


Income Statement
Other Incom Note 7
Note 7 loss on sale of assets
Capital assets 2. Sold building for 150,000, NBV 18
Deduct: lesserL=I+J-K O=.5(J-K. P=L+M-N+O S=L-R
cost or proce Revised Terminal if any) Adjusted CCA Ending
Disposals UCC Recapture Loss AccII UCC Rate CCA UCC
(150,000) (35,000) 35,000 - 6% - -
(4,000) 36,000 36,000 20% 7,200 28,800
(14,000) 48,000 48,000 30% 14,400 33,600
(6,000) - - - - 30% 1,200 -
30,000 15,000 45,000 30% 13,500 16,500
3,974 3,974 s/l 3,974 -
100,000 50,000 150,000 s/l 15,000 85,000
35,000 55,274

21.95389682 16,026 UCC remaining at Jan 1, 2019 3,974

183000
35,000 Deduct: CCA 55,274
42,000
5,900

Class 10 Class 10.1


14000 6000
17000 40000
capital loss on a depreciable asset

25000
5900
ding for 150,000, NBV 180,000 = loss on sale of building $30,000; where is this reported?
Class
8
10.1
12
50
245 365 0.671233
UCC add deduct UCC recapture TermLoss 1/2 yr rule AII UCC Rate
0 50000 50000 25000 75000 20%
0 30000 30000 15000 45000 30%
0 6200 6200 6200 100%
0 5000 5000 2500 7500 55%
CCA UCC
10068 39932
9062 20938
6200 0
2769 2231
28099

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