On January 1, 2021, Michaels Inc. purchases a used property at a cost of $4,200,000. Of this amount, $375,000 represents the FMV of the land and $3,825,000 the value of the building. In order to encourage Michaels' move to this location, the local government has provided the company with assistance of $1,100,000 towards the purchase of the building. Michaels Inc. has a December 31 year end. 

What is the maximum amount of CCA that Michaels can claim with respect to the building for 2021?

Answer rating: 100% (QA)

To determine the maximum amount of Capital Cost Allowance CCA that Michaels Inc can claim with respe... View the full answer