AFM362 Lecture Notes - Lecture 15: Capital Asset, Purch Group

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM362
• Professor: Ken Klassen

Document Summary

K gains can occur only on non-depreciable property (land, stocks, bonds) + purchases for a company, don"t include hst because they won"t pay it remit to govt (disposals) always lesser of costs or proceeds. Ucc balance b/4 adjustments (1/2 net) if purchase something only: 0. 5 * (purchase price dispose) Ucc balance before cca (cca rate) prorate it for number of days it has been, if ucc balance before cca is negative set equal to 0 (unless class 10. 1 - If you are given money from insurance to fix a capital asset, include that money in net income. Any unused portions are considered dispositions (less from ucc). When you sell/get rid of an asset, consider: the capital gain/loss. If you dispose depreciable assets you never get a capital loss recapture/terminal loss. Capital gain = proceeds > cost, goes towards net income. You can have a capital loss if you sell non-depreciable assets (stocks/bonds: ucc locp = ucc balance before cca.