K Corporation Inc. owns a restaurant business that it carries on in rented premises. The lease was signed January 1, 2018 and expires on December 31, 2023 (six years in total), and has two successive renewal options for twoyears each. K Corporation Inc. had an opening balance in 2019 in Class 13 of $30,000 that resulted from $32,000 of leasehold improvements made during the 2018 taxation year. K Corp Inc. made an additional $14,000 ofleasehold improvements to the same premises during its 2019 taxation year-end which ends December 31, 2019. What is the maximum CCA that K Corp. Inc. can claim in 2019 for its Class 13 assets?(a) $3,000(b) $5,000(c) $6,000(d) $7,000

Calculations: Class 13 asset rate = 20% To get the maximum CCA, simply: Maximum CCA = Opening…

Answered: K Corporation Inc. owns a restaurant…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter4: Income Exclusions

Section: Chapter Questions

Problem 76IIP

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