1.ABC Enterprises began operations on September 1 of the current year. It has chosen December 31 as its year end. On October 1 of the current year, the proprietorship purchased furniture and fixtures for $40,000. The maximum capital cost allowance on the furniture and fixtures for the current year ending December 31 will be:

A. 4010.96

B. 8000

C. 2673.97

D. 12000

2. On December 1 of the current year, Plen Limited purchased a franchise for $70,000. The franchise has a limited life of 15 years. Which one of the following amounts represents the maximum amount of capital cost allowance Plen Limited can deduct for its current year ending on December 31?

A. 594

B. 396

C. 7000

D. 4667

3. During the current year, Denos Corporation incurred costs of $45,000 for leasehold improvements to its newly rented building. The lease was signed in the current year for an initial term of three years plus four successive options to renew the lease, each for an additional one year term. Which one of the following amounts represents the maximum capital cost allowance claim in the current year?

A. 8438

B. 13500

C. 16876

D. 27000

4. On September 1, 2020 Carla's Company purchased a new computer for $1,600 and desktop publishing software for $400. The maximum CCA deduction for 2020 is:

A. 1650

B. 3000

C. 1520

D. 1800

Answer rating: 100% (QA)

2 Capital cost allowance each year 7000015 4667 Maximum amount of capital cost allowance can deduct ... View the full answer