Question
In the current taxation year, a corporation acquired a rental property from its sole shareholder. The building was sold for its FMV of $425,000, but
In the current taxation year, a corporation acquired a rental property from its sole shareholder. The building was sold for its FMV of $425,000, but was not allocated to a separate Class 1. The shareholder originally paid $450,000 for the building two years ago. The property was a Class 1 (4%) property to the shareholder. The shareholder has earned rental income on the property since its acquisition. The UCC of the building at the time of the sale was $420,000.
Which one of the following amounts represents the maximum CCA that the corporation may claim for this building in the current taxation year?
a. $17,000.
b. $8,500.
c. $16,320.
d. $7,200.
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