Fiona Ltd is a manufacturing company located in Ottawa, Ontario. On January $1$st$,2023$ the following UCC balances were noted for the business:

Class $1(10\%)$

$$800,000$

Class $8$

$153,000$

Class $12$

$75,000$

Class $13$

$70,000$

During $2023,$ it made the following acquisitions and dispositions:

$1)$

During the year, the company decided to expand and purchase a new building for administrative purposes. The company paid $$1,000,000$ for the building. No special election was filed.

$2)$

Fiona Ltd$.$ entered into a lease $3$ years ago for a factory. The lease was for $7$ years with a $3$ year extension. The improvements made to the leased property were $$100,0003$ years ago when they moved in$.$

$3)$

Fiona entered into a new lease agreement for an additional factory on January $1$st$,2023$ for $5$ years with $3$ renewal periods of $5$ years each. Fiona spent $$400,000$ on leasehold improvements.

$4)$

Fiona is upgrading all of its current office furniture and office fixtures. As a result, furniture and desks with original cost of $$80,000$ were sold for $$15,000.$ The new furniture costs $$75,000.$ Additionally, computers were purchased for a total of $$10,000.$

$5)$

As part of a new security initiative, application software was purchased for $$10,000$ on January $1$st$,2023.$ This is an unlimited use license.

$6)$

Fiona purchased a new gas$-$powered passenger vehicle for $$75,000$

$7)$

New tools costing less than $$500$ each were purchased for $$50,000$ during the year.

Required $$

Using the half year rule:

a$)$

Calculate the maximum CCA Fiona Ltd$.$ can claim in $2023$ and the UCC balances at the beginning of $2024($end of $2023)$; show the activity in each impacted UCC Class. Explain anything you deem necessary to explain or any other relevant tax consequences of the above.

b$)$

The CEO of Fiona, Debbie had heard that there was this CCA rule called the accelerated investment incentive where you can just claim more CCA. She has asked you to confirm if this is correct and how this works compared to normal CCA rules and the half$-$year rule.