Sage 50 Canada

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Disposition of 1 item in a CCA class

Posted By nirvana_1959 over 6 years ago

I have 2 computers in class 50 per below:

Computer-1: UCC at start of year = $800
Computer-2: UCC at start of year = $200

Computer-2 is damaged and I have junked it. No compensation was received for it (i.e., no insurance claim etc.).

How do I fill T2 Schedule-8 ?

What are the accounting entries ?

Thanks in advance.

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0 nirvana_1959 over 6 years ago

Here is a response from Allan Madan (CPA, CA):

"Since there are still assets remaining in Class 50, the Class cannot be closed and a terminal loss cannot be claimed. Continue to claim CCA as normal on Class 50 assets, even though you got rid of one computer for $0 proceeds.

For accounting purposes, record a capital loss for the disposal of the asset and remove the asset from the books. The capital loss = to the book value of the computer disposed of."
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0 nirvana_1959 over 6 years ago

Here is a response from Allan Madan (CPA, CA):

"Since there are still assets remaining in Class 50, the Class cannot be closed and a terminal loss cannot be claimed. Continue to claim CCA as normal on Class 50 assets, even though you got rid of one computer for $0 proceeds.

For accounting purposes, record a capital loss for the disposal of the asset and remove the asset from the books. The capital loss = to the book value of the computer disposed of."
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Disposition of 1 item in a CCA class

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