In the current year, Eddie Enterprises purchased new office equipment costing $40,000. The vendor gave Eddie Enterprises

Question:

In the current year, Eddie Enterprises purchased new office equipment costing $40,000. The vendor gave Eddie Enterprises $3,500 for the old office equipment which had been purchased three years ago for $6,000. At the beginning of the current year, the class 8 UCC balance was $10,000.
Calculate the maximum CCA deduction for class 8 for the current year. Income tax reference: ITA 13(21), 20(1)(a); Reg. 1100(1), (2).