Paxton Co$.$ has the following opening UCC balances for $2023$:

Class $1(4\%)$ $$645,000$

Class $8188,000$

Class $1052,000$

During $2023,$ it made the following acquisitions and dispositions:

$1)$ It sold its land and building for $$1,500,000$ and moved into a leased space. The land and

building were originally purchased for $$1,000,000.$ The land portion is considered to be

$20\%$ of the purchase and sale price.

$2)$ Paxton entered a $10-$year lease with $3$ renewal periods of $5$ years each. It spent $$90,000$

on leasehold improvements.

$3)$ It purchased $$40,000$ of new furniture. It sold its older furniture on Kijiji for $$5,000$

$($originally costing $$33,000).$

$4)$ It purchased new equipment at the end of $2023.$ It arrived on December $28,$ but because

employees were on holidays until January, it was put in position, assembled and tested

on January $5,2024.$

$5)$ Paxton purchased a new gas$-$powered passenger vehicle for $$50,000.$

Required $$

Using the half year rule:

a$)$ Calculate the maximum CCA Paxton Co$.$ can claim in $2023$ and the UCC balances at the

beginning of $2024($end of $2023)$; show the activity in each impacted UCC Class. Explain

anything you deem necessary to explain or any other relevant tax consequences of the

above.

b$)$ Calculate the CCA for the vehicle assuming it were an electric vehicle instead.