Hunter Brown's Bargains began operations in 2020. All income in the company classifies as 'business income'. The following information was provided: the year. a) Hunter signed an 8-year lease for a building when the business began. The building is in an excellent location and is estimated to be worth $500,000. Hunter has an option to renew the lease for an additional 2 years. Hunter spent $100,000 in 2020 on improvements to the leased building at the beginning of b) Hunter purchased land and a building adjacent to his business for $120,000 in 2020. The building was valued at $50,000, and is used as a storage facility. Hunter has chosen to take 4% CCA on the building. c) Hunter purchased several small tools in 2020 that are used to maintain the rental tools. The total cost of these tools was $8,000, and each tool cost under $500. d) A delivery van costing a total of $50,000 was purchased in 2020, to be used solely in the business. e) Hunter furnished the business at a cost of $30,000 with Class 8 assets. f) A computer was purchased for tracking sales and inventory. The computer cost $1,000 g) Incorporation costs for the business in 2020 were $5,000. h) Hunter purchased a $42,000 passenger vehicle to be used for the business. In 2020, the car was driven 20,000 km. 15,000 km were for business. (The car was to be used exclusively for business in the following years.) i) The business was very successful in the first year so Hunter chose to use all of the CCA that was available in 2020. U. Hunter Brown's Bargains began operations in 2020. All income in the company classifies as 'business income'. The following information was provided: the year. a) Hunter signed an 8-year lease for a building when the business began. The building is in an excellent location and is estimated to be worth $500,000. Hunter has an option to renew the lease for an additional 2 years. Hunter spent $100,000 in 2020 on improvements to the leased building at the beginning of b) Hunter purchased land and a building adjacent to his business for $120,000 in 2020. The building was valued at $50,000, and is used as a storage facility. Hunter has chosen to take 4% CCA on the building. c) Hunter purchased several small tools in 2020 that are used to maintain the rental tools. The total cost of these tools was $8,000, and each tool cost under $500. d) A delivery van costing a total of $50,000 was purchased in 2020, to be used solely in the business. e) Hunter furnished the business at a cost of $30,000 with Class 8 assets. f) A computer was purchased for tracking sales and inventory. The computer cost $1,000 g) Incorporation costs for the business in 2020 were $5,000. h) Hunter purchased a $42,000 passenger vehicle to be used for the business. In 2020, the car was driven 20,000 km. 15,000 km were for business. (The car was to be used exclusively for business in the following years.) i) The business was very successful in the first year so Hunter chose to use all of the CCA that was available in 2020. U
