COMMERCE 2FA3 Lecture Notes - Lecture 3: Tax Shield, Capital Asset, Photocopier
20 Sep 2020
School
Department
Course
Professor
Document Summary
Depreciation of assets: cca & ucc (capital cost allowance, undepreciated capital cost) Understand the rules of depreciation in canada: cca and ucc: when asset purchased: asset class/pool and cca rates, using asset: determining ucc using half-yearly rule and declining balance cca, disposing asset: Last asst in the class: assets left in the class. Every capital asset is assigned to a specific class/pool by the government. Every asset class is given a depreciation method and rate. Cca is deducted before taxes and acts as a tax shield. Income before taxes reduced by -== the amount of cca. Half-year rule - in the first year after procuring the asset, only half of the assets" cost can be used for cca purposes irrespective of when the asset is procured (even if purchased in. December 31 - company can only use asset"s cost: ex: bossman corporations purchased ,000 worth of photocopiers in 2017.
