Suppose they started 2019 with no prior capital assets. If they buy a Honda Accord for $25,000 what will their capital cost allowance be in the year 2019? What will their undepreciated capital cost be at the end of the tax year?

A startup is considering buying some vehicles to help with their business. They want to know how much depreciation they will be able to claim as a deduction on their taxes. (Hint: You can download the actual tax form for computing this from the Canada Revenue Agency: Google "capital cost allowance form." It has all the instructions for how to do this right on the form!) |(a) Suppose they started 2019 with no prior capital assets. If they buy a Honda Accord for $25,000 what will their capital cost allowance be in the year 2019? What will their undepreciated capital cost be at the end of the tax year? (b) Suppose that in 2020 the company sells the Accord for $20,000 and buys a Ford truck for $25,000. What are the capital cost allowance and the undepreciated capital cost at the end of 2020? (c) Now suppose that the company sells the truck in 2021 for $12,000. What will the capital cost allowance and undepreciated capital cost be in 2021? (d) If the company doesn't buy any new capital in 2022, will they still be able to claim a capital cost allowance in their 2022 tax return? Explain why or why not