Question

Kanata Construction specializes in large projects in Edmonton and Saskatoon. In 2017, Kanata invested $1.6 million in new excavating equipment, which qualifies for a CCA rate of 50%. At the same time the firm sold some older equipment on the secondhand market for $210,000. When it was purchased in 2014, the older equipment cost $600,000.

Calculate the UCC for the asset pool in each year from 2014 through 2018. (Round the final answers to 2 decimal places. Omit $ sign in your response.)

Year	CCA	Ending UCC
2014	$	$
2015	$	$
2016	$	$
2017	$	$
2018	$	$

Answer 1

Year	CCA $	CCA working	Ending UCC $	Ending UCC Working
2014	150,000.00	=600000*50%*1/2	450,000.00	=600000-150000
2015	225,000.00	( 450,000 x 50% )	225,000.00	(450,000 - 225,000 )
2016	112,500.00	(225,000 x 50% )	112,500.00	(225,000 - 112,500 )
2017	400,000.00	(1,600,000 x 50% x 1/2 )	1,200,000.00	=1600000-400000
2018	600,000.00	(1,200,000 x 50% )	600,000.00	(1,200,000 - 600,000 )