MGST 217 Lecture Notes - Lecture 9: Retained Earnings, Capital Cost Allowance, Capital Cost

• School: University of Calgary
• Department: Management Studies
• Course: MGST 217
• Professor: Michael Werner Saar

Document Summary

1. cost of acquisitions during the year what you add up = the cost you spend on vehicles or equipment. If you spend buying 12 bikes in year1, then your cost of acquisitions during year 1 will be . In year 2 if you buy a new car which cost you , then that"s your cost of acquisitions for year 2 is . 2. proceeds of disposition during the year: what you sold. In year 3, if you sell the car your purchase for , the price of the car you sold is the proceeds of disposition for year2. Undepreciated capital cost at the beginning of the year + cost of acquisitions during the year -proceeds of disposition during the year. Ex. if you undepreciate capital cost at the beginning of year 4 is 40000, then you have to plus the cost you spend in year 4 and minus your disposition.