A company (Coffco) was incorporated on January 1, 2021, to operate a coffee shop. Coffco incurred the following costs during its first year ended December 31, 2021: a 10-year franchise agreement costing $20,000, leasehold improvements of $15,000 on a 3-year lease with no renewal periods, and legal fees of $2,000 to incorporate Coffco. What is the maximum capital cost allowance claim for 2021?

Multiple Choice

• $10,500

• $9,500

• $7,650

• $7,500