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$20,000, leasehold improvements of $15,000 on a 3-year lease with no renewal, and legal fees of $2,000 to incorporate Cofco. What is the maximum capital cost allowance (CCA) claim for 2020?

$20,000, leasehold improvements of $15,000 on a 3-year lease with no renewal, and legal fees of $2,000 to incorporate Cofco. What is the maximum capital cost allowance (CCA) claim for 2020?

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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An individual formed a corporation (Cofco) which started a coffee shop business on January 1, 2020. Cofco incurred the following costs during its first year ended December 31, 2020: a 10-year franchise agreement costing $20,000, leasehold improvements of $15,000 on a 3-year lease with no renewal, and legal fees of $2,000 to incorporate Cofco. What is the maximum capital cost allowance (CCA) claim for 2020?
Transcribed Image Text:An individual formed a corporation (Cofco) which started a coffee shop business on January 1, 2020. Cofco incurred the following costs during its first year ended December 31, 2020: a 10-year franchise agreement costing $20,000, leasehold improvements of $15,000 on a 3-year lease with no renewal, and legal fees of $2,000 to incorporate Cofco. What is the maximum capital cost allowance (CCA) claim for 2020?
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