Walter has a rental property that he purchased new (non used) in June 2013. The property was only rented out to commercial businesses. The original cost of the building was $850,000, and the UCC was $684,816. Walter incurred the following costs during:

Gross rents received $230,000

Expenses related to earning rental income:

Advertising (for tenants) 5,000

Property taxes 60,000

Utilities (paid by tenants) Nil

Interest on Mortgage of Building 85,000

Maintenance 45,000

Question 7 options:

1)

The maximum CCA on the building is $35,000.

2)

The maximum CCA on the building is $41,089.

3)

The maximum CCA on the building is $27,393.

4)

The maximum CCA on the building is $68,482.