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Company A Company B
Asset Cost $10,000 Asset Cost $10,000
Est. useful life 4 yrs Est. useful life 6 yrs
Expense per year $2,500 Expense per year $1,667
Class 1
Buildings After 1987
4% Declining Balance
Additional allowance
Class 3
Buildings Before 1988
5% Declining Balance
Class 8
Miscellaneous Tangible (equipment, office furniture etc.)
20% Declining Balance
Class 10
Vehicles
Movable equipment
30% Declining Balance
Class 10.1
Vehicles With Cost Greater Than $30,000
30% Declining Balance
Class 12
Small Tools
Computer Software
Dishes
Books
100% Declining Balance
Class 29
Manufacturing Equipment
Purchased between
March 19, 2007 to December 31, 2013
25% in first year, 50% in second and remainder in third.
Temporary
Class 38
Power-operated and movable equipment
Acquired after 1987
Used for excavating
30% declining balance
Copyright 2016 McGraw-Hill Ryerson, Limited. All rights reserved. 17
Common Classes
Class 43
Manufacturing Equipment
30% Declining Balance
See new Class 53
Class 43.2
Clean Energy Generation Equipment (i.e. solar panels)
Acquired after march 20, 2013 and before 2020
50% Declining Balance
Class 44
Patents After April 26, 1993
Can Choose To Use Class 14
Class 45
Computers Acquired After March 23, 2004
45% Declining Balance-purchase b/w Mar 22, 2004-Mar
19,2007
Class 50
55% Declining Balance between Mar 18,2007and January
27,2009 and after January 31, 2011
Class 54
50% declining balance
Manufacturing Equipment acquired after 2015 and before 2026
3. Capital Gain
the selling price exceeds the original cost.
Negative Pool:
Amount that represents recapture - add business income,
Amount greater than recapture - two-thirds of excess is
business income.
ITA 24 - Positive Pool and business discontinues -
terminal loss.
Cost allocation
GAAP:
Useful life to allocate capital costs
Requirements management estimates.
Tax:
CCA rates predetermined rates
Rates are determined on the basis of the average normal
use of particular types of assets.