Question -- Tax depreciation calculation (8 marks)

Acme Ltd., with a taxation year that ends on December 31, 2019 has a Class 8 (20 percent) UCC balance on January 1, 2019 of $1,000,000. During 2019, it acquires new office furniture at a cost of $350,000. The Company also disposes of office furniture for total proceeds of $120,000. In no case did the proceeds of disposition exceed the capital cost of the individual furniture items being disposed of.

REQUIRED: Determine the maximum Class 8 CCA that Acme Ltd. can deduct for 2019, as well as the January 1, 2020 UCC balance, assuming that maximum CCA is taken in 2019.