Green Day Packers (GDP) purchased a computer for its back office operations in 2008 (Class 45,…
Green Day Packers (GDP) purchased a computer for its back office operations in 2008 (Class 45, 45% CCA) for $5,000. Because of expanding operations, GDP purchased two additional computers in 2010 for $4,000 each. By 2011, the original computer was considered to be too slow and was sold for $800. One year later the company decided to sell all its computer hardware for $1,500 and outsource its operations. Calculate GDP’s UCC and maximum CCA for each year, from 2009 to 2012. Assume that the asset class is closed upon sale of the computers. If GDP’s income is $50,000 before claiming CCA for 2012 and its tax rate is 30%, how much tax will the company have to pay?