Clean Air Ltd., a public corporation, specialized in manufacturing air filter. The company was newly incorporated on February 1, 2022 and begins its operation immediately.

During the first few months of operations, the following expenditures were made by Clean Air Ltd:

Legal fees for incorporation$5,500Building (constructed after 2007 and 90% of the space is for manufacturing)660,000Manufacturing and processing machinery580,000Variety of small tools112,000Computer programs for keeping track the sales order11,000

Required:

Calculate the maximum Capital Cost Allowance (CCA) that can be claimed by Clean Air Ltd, assuming the taxation year for the company is December 31.

Note: You are required to show your work in order to earn full marks but you are not required to reference legislation in Income Tax Act