Three recent Industrial Engineering graduates are considering setting up a new consulting company, ErgoTech Ltd., to provide services on ergonomic designs and evaluations.  Initially, they expect to invest $7000 on furniture, photocopier and testing equipment (Class 8), $3500 on a computer including system software (Class 10), $2400 on general and specialized software (Class 12), and $13,000 for a small car (Class 10) to visit clients.  If the business grows as well as expected, they foresee the following transactions over the coming years:

Year 1: purchase additional ergonomics software for $800.
Year 2: purchase a second computer for $4000, and specialized software for $1000.
Year 3: sell the car for $6000 and purchase a van for $20,000 for ease of transporting testing equipment; sell the old photocopier for $1000, and buy a better model costing $2500.
Year 4: sell the original computer for $500 (uninstalling all software except the systems software); spend $2000 to upgrade the motherboard, RAM and video card on the second computer which will significantly improve its performance.

Fill out a Schedule 8 form for Revenue Canada showing the CCAs for each year.  Determine the total CCA over all classes for each year of the business.

Answer rating: 100% (QA)

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