During the period ended December 31, 2020, Magic Ltd., a newly incorporated company incurred $20,000 of incorporation costs.Since it is a brand new company, Magic Ltd. was incorporated on September 1, 2020.The undepreciated capital cost on September 1st, 2020 was nil for all of its classes with the exception of the newly incurred incorporation costs.The company decided to have December 31st, filing date for its annual tax returns which resulted in financial statements for only 4 months (September 1 to December 31st, 2020) for the first reporting period.Which ONE of the following statements istruefor 2020?

Group of answer choices

a) The company will have a capital cost allowance of $500 for 2020 for class 14.1

b) The company will have a capital cost allowance of $1,500 for 2020 for class 14.1

c) The company will have a capital cost allowance of $1,275 for 2020 for class 14.1

d) The company will have a capital cost allowance of $425 for 2020 for class 14.1

A taxpayer has a Class 10 pool consisting of 3 motor vehicles costing $6,000 each, left in the class. Which of the following statement is true when it comes to calculating CCA for 2020?

Group of answer choices

a) A terminal loss occurs when there is a balance in the pool just before the last asset is sold.

b) Recapture can occur even if there are still assets left in the pool. For example a sale of an asset causes the pool's remaining UCC balance to become positive.

c) When it comes to the sale of the Class 10 assets the lower of cost or market value should be credited to the pool.

d) Each car should be set up as a separate class 10 asset

Which one of the following listed items is not classified as a zero rated supplies for HST purposes?

Group of answer choices

a) Health Care

b) Exported Goods and Services

c) Prescription Drugs

d) Medical devices such as hearing aids, or prescription glasses

Which one of the following items isNotFully Deductiblein computing the income of a corporation under Division B of the Act?

Group of answer choices

a) Advertising in a U.S. magizine which the advertising is exclusive made to attract only American citizens as clients

b) Life insurance paid on the President of the company as a result of the bank requiring collertial security on a bank loan. The bank loan had a balance of $1,000,000 throughout the year.

c) The premium on a $100,000 Group term life insurance policy on an employee if the beneficiary of the policy is the employee's family

d) Speeding ticket received while the company's delivery van was making a delivery on behalf of the company