On June 1, 20X1, Beta Ltd, purchased a franchise for $91,000. The franchise has a limited life of 13 years. Which one of the following amounts represents the maximum amount of capital cost allowance that Beta can deduct for its year ended July 31, 20X1? Ignore the leap year.

Question 2 options:

1)

$1,170

2)

$7,000

3)

$3,500

4)

$4,777