On March 1 of the current year G, who operates a wholesale business, leased a new...
On March 1 of the current year G, who operates a wholesale
business, leased a new warehouse space and immediately spent
$200,000 improving the interior of the building. The lease contract
is for 3 years with an option to renew the lease for two additional
3-year terms. What is the maximum CCA deduction that G can claim in
the current year?
note: (16,667 doesnt work)
Homework Answers
Answer:-
Given information as per question.
Spent for Building = 200000
lease Contract = 3yr
Renew Lease = 3yr
Total Lease Contract = 3 + 3
= 6 year
CCA Deducation = Spent for Building/Total lease contract
= 200000/6
= 33334(Approx)
According to rule 50% of CCA (1st Year) = 33334*50%
= 16667
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