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Grant MacEwan University - ACCT 328 CCA quiz

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Grant MacEwan University - ACCT 328

CCA quiz.1

1)Which of the following assets would be included in Class? 10.1?

 

 

Choose the correct answer.

A.

Motor? vehicles, including passenger? vehicles, which cost less than? $30,000.

B.

Motor? vehicles, such as? pick-up trucks, trailers and vans used to transport? goods, equipment or passengers.

C.

Passenger? vehicles, such as? sedans, station? wagons, sports? cars, with a cost less than? $30,000.

D.

Passenger? vehicles, such as? sedans, station? wagons, sports? cars, with a cost more than? $30,000.

 

5. GBG Company has the following information related to class 10 assets for the current? year:

Beginning? Balance: $ 156  000

cost of? additions: $ 20  000

Dispositions, proceeds: $ 34  000 ?(original costequals?$64  000?)

The class 10 rate is 30?%. Using only this? information, what is the maximum CCA deduction for the current year for class 10? assets?

Choose the correct answer.

A.

$ 46  800

B.

$ 40  800

C.

$ 42  600

D.

$ 39  000

6. You are provided with the following information related to class 8 assets for the current? year:

Undepreciated Capital Cost? (UCC) Beginning? Balance: ?$86  000

Cost of? additions: ?$9  000

Dispositions? (i.e. reduction for? disposals): ?$15  000

The class 8 rate is? 20%. Using only this? information, what is the maximum capital cost allowance? (CCA) deduction for the current year for class? 8?

Choose the correct answer.

A.

$15  100

B.

$18  100

C.

$14  200

D.

$16  000

7. DRG Company has the following information related to class 10 assets for the current? year:

Beginning? Balance: $ 154  000

cost of? additions: $ 8  000

Dispositions, proceeds: $ 44  000 ?(original cost equals? $74  000?)

8. The class 10 rate is 30?%. Using only this? information, what is the maximum CCA deduction for the current year for class 10? assets?

Choose the correct answer.

A.

$ 33  600

B.

$ 46  200

C.

$ 35  400

D.

$ 31  800

 

9. A proprietor purchases an? income-producing asset that has a class life of five years. It is the only asset the company owns. The proprietor sells the asset after four years. If the? asset's market value has declined by more than the CCA? taken, ________ for the year.

Choose the correct answer.

A.

there will be a capital loss

B.

there will be a terminal loss

C.

there will be a capital gain

D.

the UCC balance will be negative

10. The amount of capital cost allowance a company takes for a given tax year? ________.

Choose the correct answer.

A.

is the median amount between the minimum allowable CCA and maximum allowable CCA

B.

is the same amount for all assets within a class

C.

is any amount the company chooses up to the maximum allowable

D.

is prescribed within the Income Tax Regulations

 

11. Capital cost allowance is the tax method of? ________.

Choose the correct answer.

A.

expensing the acquisition costs of? long-lived assets over time

B.

recording the decrease in fair market value of? long-lived assets over time

C.

recognizing the costs associated with acquiring business capital

D.

obtaining government assistance with? business-related costs

 

12. Intangible capital assets are included in which CCA? class(es) for income tax? purposes?

Choose the correct answer.

A.

Classes 14 and 14.1

B.

Class 13

C.

Classes 10 and 10.1

D.

Classes 8? & 10

 

13. A proprietor begins operations on April? 1, of the current? year, and has a calendar fiscal year. The proprietorship acquires a machine on December 1 of the current year. The machine has a cost of ?$21  000 and the company incurs ?$9  000 of costs to install the machine. The machine is a class 8 asset with a rate of 20?%. What is the maximum CCA deduction XYZ can take on this asset for the current fiscal? year, from April 1 to December? 31?

Choose the correct answer. ?(Round your answer to the nearest? dollar.)

A.

$4  500

B.

$2  260

C.

$4  200

D.

$3  000

 

 

14. ABC Company has the following information related to class 8 assets for the current? year:

Beginning? Balance: $ 80  000

cost of? additions: $ 15  000

Dispositions, proceeds: $ 7  000 ?(original cost equals? $17  000?)

The class 8 rate is 20?%. Using only this? information, what is the maximum CCA deduction for the current year for class 8? assets?

Choose the correct answer.

A.

$ 16  800

B.

$ 2  000

C.

$ 14  800

D.

$ 17  600