Agha Ltd. is engaged in manufacturing and processing, which is 95% of their business, with a December

31 year-end. On January 1, 20x14, the undepreciated capital cost for each class of its assets was as follows:

Class 1-MB building $289,401

Class 8 office furniture and equipment 60,000

Class 10.1 automobiles 17,850

Class 12 small tools 5,000

Class 13 leasehold improvements 175,000

The following additional information was found in the 2014 audit files:

(1) The building, which cost $464,309 in 20x9, was sold for $260,000. It was the only building in Class 1

MB at the time of its sale. The underlying land was sold for proceeds equal to the original cost. Agha

Ltd. purchased a new manufacturing building in August 20x14 for $600,000.

(2) New office furniture was purchased for $20,000. This purchase replaced old assets, which were sold

for $5,000. None of the old assets were sold for more than original cost.

(3) Some small tools were sold for a total of $7,000. All of these tools were sold at a price less than their

original cost.

(4) The opening balance in Class 13 represents leasehold improvements of $210,000 made during 20x12

to the leased warehouse. During 20x14, further leasehold improvements were made to the same

leased warehouse at a cost of $24,000. The remaining lease term was five years with two successive

two-year renewal terms.

(5) The Class 10.1 automobile was purchased in 20x12 for $34,000. During 20x14, it was sold for $21,000.

A new automobile was purchased for $45,200 (ignore HST).

(6) A 15 year license was purchased for $80,000 on September 20, 20x14.

(7) Several computers were purchased in January 20x14 for $7,000.

Required:

a) draw schedule to show the maximum CCA deduction available to Agha Ltd. for 20x14 based

on the above information. The schedule should also show the January 1, 20x15 UCC balance for

all classes. Use the regular CCA rules.

b) Redo the schedule for Class 8 using the accelerated investment incentive rules.