Oshawa Manufacturing Ltd. is a Canadian corporation with a December 31 year-end. The company purchased new equipment on November 25, 2019, for $100,000. Prior to this purchase, the company did not own any other equipment. Required:

a) Determine the maximum amount of CCA (Capital Cost Allowance) that can be deducted in years 2019 and 2020? b) What are the tax consequences if in October 2021, the business sells the equipment for (i) $50,000? (ii) $104,000?

please refer to Canadian tax system