5: 1,3,4,6

Problem 1:
UCC of class 1 at beginning of year

225,000

Add: Purchases during year

0
= 225,000

Deduct: dispositions during year at lesser of:

a) capital costs
b) proceeds of disposition

275,000
250,000

(250,000)

UCC before adjustment

=(25,000)

Deduct net amount

UCC before CCA

(25,000)

Deduct: CCA for the year

(1,500)

Add: net amount

UCC at the end of the year

(26,500)

Theres a recapture!

UCC of class 1 (6%) at beginning of year

Add: Purchases during year

225,000
Nil
225,000

Deduct: dispositions during year at lesser of:

a) capital costs
b) proceeds of disposition

275,000
250,000

(250,000)

UCC at the end of year

(25,000)

Recapture of CCA taken into income

25,000

UCC at beginning of next year

Nil

UCC of class 8 (20%) at beginning of year

30,000

Add: Purchases during year

Nil
= 30,000

Deduct: dispositions during year at lesser of:

a) capital costs
b) proceeds of disposition

6,500
3,000

(3,000)

UCC before adjustment

=27,000

Deduct net amount

UCC before CCA

27,000

Deduct: CCA for the year

(5,400)

Add: net amount

UCC at the end of the year

21,600

UCC of class 10 (30%) at beginning of year

20,000

Add: Purchases during year

6,000
= 26,000

Deduct: dispositions during year at lesser of:

a) capital costs
b) proceeds of disposition

7,000
8,000

(7,000)

UCC before adjustment

=19,000

Deduct net amount

net additions)

(Nil b/c negative

UCC before CCA

19,000

Deduct: CCA for the year

(5,700)

Add: net amount

Nil

UCC at the end of the year

13,300

UCC of class 10.1 (30%) at beginning of year

13,000

Add: Purchases during year

Nil
= 13,000

Deduct: dispositions during year at lesser of:

a) capital costs
b) proceeds of disposition

45,000
15,000

(15,000)

UCC before adjustment

=(2,000)

Deduct net amount

Nil

UCC before CCA

(2,000)

No recapture is allowed for class 10. 1 assets

Deduct: CCA for the year (1/2 of CCA if wasnt disposed of)*
Add: net amount

Nil

UCC at the end of the year

(1,950)

(3,950)

CCA: 13,000 * 0.3 = 3,900 * 0.5 = 1,950

Problem 3:

2012: UCC of class 10.1 (30%) at beginning of year

Add: Purchases during year

33,900
33,900

Deduct: dispositions during year at lesser of:

a) capital costs

b) proceeds of disposition

UCC before adjustment

33,900

Deduct net amount

(16,950)

UCC before CCA

16,950

No recapture is allowed for class 10. 1 assets

Deduct: CCA for the year

(5,085)

Add: net amount

16,950

UCC at the end of the year

28,815

2013: UCC at beginning of year:

28,815

Add: Purchases

Deduct:

UCC before adjustment

28,815

Deduct net amount

Nil

UCC before CCA

28,815

Deduct: CCA for the year

(8,644.50)

Add: net amount

Nil

UCC at the end of the year

20,170.50

2014: UCC at beginning of year:

20,170.50

Add: Purchases

Deduct:

UCC before adjustment

20,170.50

Deduct net amount

Nil

UCC before CCA

20,170.50

Deduct: CCA for the year

(6,051.15)

Add: net amount

Nil

UCC at the end of the year

14,119.35

2015: UCC of class 10.1 (30%) at beginning of year

14,119.35

Add: Purchases during year

Nil
14,119.35

Deduct: dispositions during year at lesser of:

a) capital costs
b) proceeds of disposition

Nil

UCC before adjustment

14,119.35

Deduct net amount

(Nil)

UCC before CCA

14,119.35

Deduct: CCA for the year

(4235.81)

Add: net amount

Nil

UCC at the end of the year

9883.54

2016: UCC of class 10.1 (30%) at beginning of year

9883.54

Add: Purchases during year

Nil

UCC before CCA

9883.54

Deduct: CCA for year (half year rule)

(1482.53)

Deduct: dispositions during year at lesser of:

a) capital costs

33,900

b) proceeds of disposition 25,000

(25,000)

UCC at the end of the year

(16,598.99)

No recapture is allowed for class 10. 1 assets

Also talk about how to report it on Judys 2016 T4
Impact on company and judy?

Problem 4:

Eligible capital property intang property like goodwill

Declining balance at 7%
75% of each eligible expenditure added to cumulative eligible capital (CEC)
account
75% of proceeds deducted from CEC account upon disposal
No half year rule

Using the instructions from the ppt regarding this questions, we assume Mr. Green
didnt sell the store. Calculate his CECA for 2016, and CCA for 2017
Opening UCC Balance
2011: 20,000 * 75% =
15,000
2012: 13950
2013: 12973.5

CECA (2011-2016)/ CCA

(2017)
15,000 * 7% = 1050

Ending Balance

13950 * 7% = 976.5
12973.5 * 7% = 908.15

13950 976.5 = 12973.5

12973.5 908.15 =
12065.35
12065.35 844.57 =
11220.78
11220.78 785.45 =
10435.33
10435.33 730.47 =
9704.86
9704.86 679.34 =
9025.52

2014: 12065.35

12065.35 * 7% = 844.57

2015: 11220.78

11220.78 * 7% = 785.45

2016: 10435.33

10435.33 * 7% = 730.47

2017: 9704.86

CCA: 9704.86 * 7% =
679.34

15,000 1050 = 13950

Problem 6:
2016: no CCA since the machine was not available for use until the next year
2017: CCA Class 53 since asset is acquired after 2015, and before 2026:
565,000 (282,600
2017: UCC of class 53 (50%) at beginning of year

Add: Purchases during year

565,000
565,000

Deduct: dispositions during year at lesser of:

a) capital costs
b) proceeds of disposition

Nil

UCC before adjustment

565,000

Deduct net amount

(282,500)

UCC before CCA

282,500

Deduct: CCA for the year

(141,250)

Add: net amount

282,500

UCC at the end of the year

423,750