On January 1, 2021, Bard Ltd. has a Class 8 (20% rate) UCC balance of $32,400. The Class 8 property are used in the company's business. The only transaction involving Class 8 property during 2021 was a disposition on July 12 of a group of Class 8 property that had a combined capital cost $62,300. The combined proceeds of disposition was $41,800. None of the properties were sold for an amount in excess if their capital cost. The Company's taxation year ends on December 31. What are the income tax consequences of the disposition of the Class 8 properties for the 2021 taxation year? In addition, determine the Class 8 UCC balance as of January 1, 2022

SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter12: Corporations: Organization, Capital Structure, And Operating Rules
Section: Chapter Questions
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On January 1, 2021, Bard Ltd. has a Class 8 (20% rate) UCC balance of $32,400. The Class 8 property are used in the company's business. The only transaction involving Class 8 property during 2021 was a disposition on July 12 of a group of Class 8 property that had a combined capital cost $62,300. The combined proceeds of disposition was $41,800. None of the properties were sold for an amount in excess if their capital cost. The Company's taxation year ends on December 31. What are the income tax consequences of the disposition of the Class 8 properties for the 2021 taxation year? In addition, determine the Class 8 UCC balance as of January 1, 2022
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