Question

J Ltd.’s office building was destroyed by fire in the current year. Building’s original cost was $200,000 and the class 1 UCC balance at the beginning of the year was $170,000. The building was insured for its market value of $250,000. A new building costing $290,000 was constructed 18 months after the fire. What is the minimum recapture of CCA for tax purposes in the current year?

Answer 1

Answer : - folleuing Information gilen in question: S orizinal cost of •) UCC balance Building :- $ 2,00,000 at bessinnins :- $ 1,70,0oo Insured for its masket value :- $ 2,s0,000 calculation of ( Capital cost muzimum CCA recapture of Allowance):- Recapture of Proceed of disposution CCA = UCc = $1,70,00 -42,5o,000 -180000. "When the difference betuseen UCC and Proceed of disposition CHere, Insured sum) us Desative, then amorert is considesed income C other înceome). The constouction of new buulding $2,90,000 * Nate :- is consttucted 18 menths after the fire, in Deset year Or nat in current year. it will nat be talken in Calculation means Eo the puepose in cerosent year. Of cCA for tae