4 An individual formed a corporation (Cofco)which started a coffee shop business onJanuary 1, 2020. Cofco incurred the followingcosts during its first year ended December 31,2020: a 10-year franchise agreement costing$20,000, leasehold improvements of $15,000on a 3-year lease with no renewal, and legalfees of $2,000 to incorporate Cofco. What isthe maximum capital cost allowance (CCA)claim for 2020?

As per question Cofco is formed on 1 jan 2020. Cost incurred in first year of operation Franchise…

Answered: $20,000, leasehold improvements of…

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

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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?