Question 3 (5 marks)
Tracy Trent owns a rental property. She purchased the land for $200,000 and built the building for
$300,000 (Class 1 \textendash{} 6%).
1) In Year 5, the beginning UCC of the building was $241,700. Calculate the CCA for the
year.
2) In Year 6, she spent $50,000 on renovation, assuming accelerated CCA rule applies,
calculate the CCA for the year. (hint: consider the data in 1) as well)
3) In Year 7, she sold the rental property for $1,000,000 (land $400,000; building $600,000).
\textendash{} Calculate the capital gain or loss for both land and building.
\textendash{} Calculate the recapture or terminal loss, if any.
*Please round the calculations to the nearest dollar.