AFM 362- Midterm Exam Guide - Comprehensive Notes for the exam ( 47 pages long!)

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM362
• Professor: Ken Klassen

Document Summary

It looks better on our books in december than in february. Terminal loss occurs when positive number but no more assets in the class. Proceeds were but costs were , so take because it"s lower. Only up to ,000 value for cca. Cca of last year = 50% x 30% x balance. Cost office lease = 4 years + 2 two-year renewal period. Half-year rule = 3333 / 2 = 1666. 67. Tax treatment: proceeds - cost = capital gain. 25000 27000 = 2000 book loss for accounting. 25000 45000 = 0 capital loss for tax. Second car has no proceeds yet, cannot calculate. 7% for old balances for the first ten years. Problem 1: transfers to spouse have an automatic rollover. If they elect out of the rollover, interest on the loan is not at the prescribed rate, bond interest is attributed to donna. (automatic rollover)