In October 2019 a thief broke into Guda Corporation's head office and stole their electronic communications equipment. The equipment originally cost $18,000 and was in a separate Class 8 with a UCC balance of $12,000. Fortunately, the equipment was insured for replacement cost so Guda received insurance proceeds of $20,000. The equipment was replaced in January, 2020 for $20,000. Guda has a taxation year that ends on December 31.
Provided the appropriate elections are made to minimize the 2019 income inclusions, determine the tax values for the equipment at the end of 2020.

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The Answer of In October 2019 a thief broke into Guda Corporation's head office and stole their electronic communications equipment. The equipment originally cost $18,000 and was in a separate Class 8 with a UCC balance of $12,000. Fortunately, the equipment was insured for replacement cost so Guda received insurance proceeds of $20,000. The equipment was replaced in January, 2020 for $20,000. Guda has a taxation year that ends on December 31.
Provided the appropriate elections are made to minimize the 2019 income inclusions, determine the tax values for the equipment at the end of 2020.

In October 2019 a Thief Broke into Guda Corporation's Head