ADMS 3520 Midterm: Tax1 Test2Nov08.doc

• School: York University
• Department: Administrative Studies
• Course: ADMS 3520
• Professor: Hernan Humana

Document Summary

Golden dragon ltd. begins operations in vancouver on september 1, 2003. These operations include an elegant sit down restaurant specializing in northern chinese cuisine, as well as a take out operation that provides home delivery throughout the city. To facilitate this latter operation, on october 12, 2003, the company acquires 20 small cars to be used as delivery vehicles. The cost of these cars is ,000 each and, for purposes of calculating cca, they are classified as class 10 assets. During the first year of operations, the company establishes a fiscal year ending on. In the fiscal periods 2004 through 2008, the following transactions take place with respect to the company"s fleet of delivery cars: 2004 the company acquires five more cars at a cost of ,500 each. In addition, three of the older cars are sold for total proceeds of ,500. 2005 there are no new acquisitions of cars during the year.