Green Business Ltd.(GBL)began operating ten years ago,and has always claimed maximum CCA.The company has a December 31^st year-end.
The following information is known about GBL's capital assets:
1.The undepreciated capital cost in Class 8 was $10,000 at the end of 20X1.None of the assets in the class were purchased in 20X1.
2.In 20X2,GBL expanded into the manufacturing of recycle bins and purchased a Class 29 asset for $50,000.
3.The undepreciated capital cost in Class 10 was $12,000 at the end of 20X0.Due to the company's growth,GBL sold the only asset in the pool (a small pickup truck)on December 15^th of 20X1 for $5,000.GBL immediately spent $8,000 on a slightly larger used truck to use temporarily until an appropriate work truck could be found in the upcoming year.
Required:
1.Calculate the net increase or decrease in GBL's net income for tax purposes for 20X2 if the maximum CCA is claimed.
2.Based strictly on the information provided,what tax advice would have been beneficial for GBL in 20X1 in order to minimize the company's net income for tax purposes?

Question

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The Answer of Green Business Ltd.(GBL)began operating ten years ago,and has always claimed maximum CCA.The company has a December 31^st year-end. The following information is known about GBL's capital assets: 1.The undepreciated capital cost in Class 8 was $10,000 at the end of 20X1.None of the assets in the class were purchased in 20X1. 2.In 20X2,GBL expanded into the manufacturing of recycle bins and purchased a Class 29 asset for $50,000. 3.The undepreciated capital cost in Class 10 was $12,000 at the end of 20X0.Due to the company's growth,GBL sold the only asset in the pool (a small pickup truck)on December 15^th of 20X1 for $5,000.GBL immediately spent $8,000 on a slightly larger used truck to use temporarily until an appropriate work truck could be found in the upcoming year. Required: 1.Calculate the net increase or decrease in GBL's net income for tax purposes for 20X2 if the maximum CCA is claimed. 2.Based strictly on the information provided,what tax advice would have been beneficial for GBL in 20X1 in order to minimize the company's net income for tax purposes?