Question
On January 1, 2020, Underworld Ltd acquires real property at a cost of $4,642,442. Of this amount, $636,999 represents the FMV of the land. The
On January 1, 2020, Underworld Ltd acquires real property at a cost of $4,642,442. Of this amount, $636,999 represents the FMV of the land. The building is new and will be used 100% for non-residential activity, none of which involves manufacturing. Underworld allocates its cost to a separate Class 1. In order to encourage Underworlds move to this location, the local government has given them $1,881,876 to assist in the acquisition of the building.
What is the maximum amount of CCA that Underworld can deduct on this building for its fiscal year ending December 31, 2020?
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Financial Accounting Reporting And Analysis
Authors: Michael Diamond, James Stice, Earl K. Stice, James D. Stice
5th Edition
0538873019, 978-0538873017
