Mr. Wonder owns a company that manufactures widgets in a small community just north of Penticton. The following balances are reflected in the companys books of account and tax records as at January 1, 2020.

ACCOUNTING TAX

RECORDS RECORDS

Type of Asset	Class	Cost	Book Value	UCC January 1, 2020
Brick building	Class 3 (5%)	$150,000	$ 30,000	$ 75,000
Equipment (ordinary)	Class 8 (20%)	75,000	45,000	21,000
Truck	Class 10 (30%)	17,500	10,000	7,289
Leasehold improvements	Class 13 (SL)	45,000	40,000	41,250
License	Class 14 (SL)	39,000	29,250	29,250

1. The leasehold improvement represents an improvement to a leased warehouse in downtown Penticton on January 1, 2019, costing $45,000. The lease is for 3 years with two successive options to renew of 3 years each. He entered into this lease on January 1, 2019.
2. The brick building was purchased in 1986.
3. The license was purchased on June 30, 2018 at a cost of $39,000. The service life of the license is 6 years.
4. During 2020 the company made the following expenditures:
   1. Purchased a building costing $250,000 including $75,000 for land (Class 1 10%)
   2. Further renovations to leased warehouse (see note 1) of $12,000 on January 1, 2019.
   3. Equipment purchased during 2020:
      1. Office equipment - $1,000
   4. Purchased a 5-year license to manufacture a related product line on March 1, 2020 at a cost of $15,000
   5. Paid $30,000 June 15, 2020 for a customer list (Class 14.1 5%).
5. During 2020 the company disposed of the following assets:

	Proceeds	Capital Cost
Brick building (The only asset in the class)	$200,000	$150,000
Equipment	2,000	2,500
Truck (The only asset in the class)	5,000	17,500

REQUIRED:

1. Prepare a schedule for tax purposes to reflect the above transactions and to calculate the maximum capital write-offs from income for 2020 and the balances in the capital asset accounts on January 1, 2021.
2. Indicate the tax effects of these transactions on income.