Question

Taxation CCA

During 2020 Desiderata Design Corp. purchased a new BMW for $42,000. The car is used exclusively for business use. The maximum CCA deduction for 2020 is:

Question 9 options:

$18,900

$9,000

$13,500

$12,600


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Answer #1

Maximum CCA claimable for motor cars worth $42,000 is limited to $30,000.


Maximum CCA rate = 30%


So, the Allowable CCA deduction for 2020 will be,


$30000*30% = $9000



answered by: SECRET
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