Pointer Ltd. has determined that, for the current year, it will have taxable income before the deduction of CCA of $40,000. It is the policy of the Company to limit CCA deductions to an amount that would reduce taxable income to nil. At the end of the year the UCC balances of all of the company's depreciable property are as follows:

Class 1 (Buildings acquired in 2005)

$475,000

Class 8

95,000

Class 10

102,000

Class 10.1

26,000

There have been no additions to or dispositions from any of the classes during the year. From which class(es) should CCA be claimed to reduce taxable income to nil? Explain your conclusion.