At the beginning of 2020, Rodlin Inc

Finance Dec 14, 2020

At the beginning of 2020, Rodlin Inc. has two assets in Class 8. The cost of each asset was $980 and the Class 8 UCC balance on January 1, 2020 was $250. On July 31, 2020, one of the assets was sold for $360. There are no other additions or dispositions prior to the Company's December 31, 2020 year end.

What is the amount of the increase in the Company's net business income as a result of this disposition? Enter as a positive number.

Expert Solution

Business income = Sale proceeds (-) UCC balance

Given,

Sale proceeds= 360

UCC balance= 250

Put the values in the formula;

= $360- $250

= $110

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