Cool Rugs Inc., “The Company”, has a December 31 year-end. On January 1, 2021, The Company’s Class 13 UCC balance is $350,000. This opening balance represents leasehold improvements of $600,000 made during 2019. The three-year lease was negotiated in 2019. It has four renewal options, each for three years. No other leasehold improvements were made until November 2021. In November 2021, The Company made further leasehold improvements of $300,000.

 REQUIRED

 Calculate the maximum Class 13 CCA that can be deducted for the year ending December 31, 2021. Calculate the opening UCC balances for the following 2022 year.

Answer rating: 100% (QA)

Part B 2019 leasehold improvements600000 Total lease period 7years 60000... View the full answer