Need the answer in detail asap!!! (Canada)
Jon’s Auto Parts Ltd., which manufactures equipment, had the following balances in its
ecords concerning its capital assets as at January 1, 2020:
Amortization CCA
Type of asset Straight Line Book Value Class ucc
Land N/A $120,000
Building 40 years $900,000 1 $568,000
Equipment 5 years $163, XXXXXXXXXX,000
Leasehold improvements (see below) $113, XXXXXXXXXX,000
Owner's Vehicle 5 years $56, XXXXXXXXXX,500
Class 13 assets consist of:
- Improvements to a leased warehouse costing $100,000 in 2019. The remaining
length of the lease in 2019 was six years with two successive options of fou
years.
- Improvements to a leased office space for head office downtown, costing
$81,600 in 2017. The remaining length of lease in 2017 was five years with an
option to renew for an additional one year.
The Owner's vehicle was sold in 2020 for $32,000.
Required —
Calculate the total CCA the Jon’s Auto Parts can claim for 2020. Assume
they do take advantage of the Accelerated Investment Incentive