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QUE The following information relates to Nearsited Services Company's depreciable assets for the current year Class 1 On June 1, 2018, the Company acquired a new residential complex building total, an amount of $500,000 represents the value of the land. The building consists of multiple units that will be leased for residential purposes to the public. The building is allocated to a separate Class 1 as an investment at a cost of $1,500,000. Of this Class 3 The Company owns a few office buildings. The January 1, 2018 balance in this Class was the buildings in this class was sold for proceeds of $575,000 The building had a capital cost of $425,000. $2,156,000. During 2018, one of Class 10 The January 1, 2018 balance in this Class was $746,000. During 2018, the Company acquired Class 10 assets for a total cost of $210,000. Also, one of the several Class 10 assets was sold during the year for proceeds of $25,000. It had a cost of $70,000 Class 13 The January 1, 2018 balance in this Class was $243.750 reflecting improvements that were made in 2017, the year in which the lease commenced. The property leased consists of office space for the Company's executives. The basic lease term is for 15 years, with two successive options to renew for a period of 5 years each Additional improvements costing $52,250 were made on October 1, 2018. Class 50 The January 1, 2018 balance in this Class was $74,000. During 2018, the last asset in Class 50 was sold for proceeds of $25,000. That asset had a capital cost of $75,000. No further assets were acquired before the end of the year, and no other assets of this class was owned by the Company at the end of the year Required: Calculate the maximum CCA that can be taken by the Company on each class of assets for the year ending December 31, 2018 as well as the UCC on January 1, 2019 In addition, determine the amount of any taxable capital gain, allowable capital loss cCA recapture or terminal loss that arises as a result of the sale of the Company's depreciable assets during the year Assume the Company always takes maximum CCA on each class of depreciable assets Ignore GST/HST/PST considerations. Explain your answer, including detailed calculations QUE The following information relates to Nearsited Services Company's depreciable assets for the current year Class 1 On June 1, 2018, the Company acquired a new residential complex building total, an amount of $500,000 represents the value of the land. The building consists of multiple units that will be leased for residential purposes to the public. The building is allocated to a separate Class 1 as an investment at a cost of $1,500,000. Of this Class 3 The Company owns a few office buildings. The January 1, 2018 balance in this Class was the buildings in this class was sold for proceeds of $575,000 The building had a capital cost of $425,000. $2,156,000. During 2018, one of Class 10 The January 1, 2018 balance in this Class was $746,000. During 2018, the Company acquired Class 10 assets for a total cost of $210,000. Also, one of the several Class 10 assets was sold during the year for proceeds of $25,000. It had a cost of $70,000 Class 13 The January 1, 2018 balance in this Class was $243.750 reflecting improvements that were made in 2017, the year in which the lease commenced. The property leased consists of office space for the Company's executives. The basic lease term is for 15 years, with two successive options to renew for a period of 5 years each Additional improvements costing $52,250 were made on October 1, 2018. Class 50 The January 1, 2018 balance in this Class was $74,000. During 2018, the last asset in Class 50 was sold for proceeds of $25,000. That asset had a capital cost of $75,000. No further assets were acquired before the end of the year, and no other assets of this class was owned by the Company at the end of the year Required: Calculate the maximum CCA that can be taken by the Company on each class of assets for the year ending December 31, 2018 as well as the UCC on January 1, 2019 In addition, determine the amount of any taxable capital gain, allowable capital loss cCA recapture or terminal loss that arises as a result of the sale of the Company's depreciable assets during the year Assume the Company always takes maximum CCA on each class of depreciable assets Ignore GST/HST/PST considerations. Explain your answer, including detailed calculations

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