ACCO 340 Lecture Notes - Lecture 4: Qst, Mercedes-Benz, Photocopier
25 Jan 2017
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Cost of assets include: everything to make the asset ready for use and in the proper place customs, registration. Cost exclude: gst qst & government grants. Cca is only considered when asset is used: first year of usage, second year after acquisition. For public corp: when deduction of depreciation starts. Half year rule: in the first year of acquisition 50% of cca amount. Purchase of 10,000$ sell at 5,000$ deduction of 5,000$ When last assets has a positive balance, the closing balance needs to be 0$, the terminal loss is the amount that needs to be subtracted to get to 0$. If disposition is negative in any given year, the closing balance needs to be 0$, the amount that is added to get to 0$ is recapture. Adjustement for year rule of net addition. Taxation years less than 12 months (first and last year of inc. ) open or close a company.
