Question
Zeta Ltd. is a Canadian-controlled private corporation, printing and publishing books, which began operating on June 1, 2020. It has chosen a December 31, year-end.
Zeta Ltd. is a Canadian-controlled private corporation, printing and publishing books, which began operating on June 1, 2020. It has chosen a December 31, year-end.
Zeta purchased the following assets:
Land and Building to be used for manufacturing
built after March 18, 2007 ($348,000 with $100,000 allocated to land) $248,000
Printing presses 120,000
Office furniture and equipment 33,000
$245,000
The following facts were gathered by the accountants:
1. Legal fees paid to set up the company were $20,000.
2. A new passenger vehicle costing $60,000 was purchased in November 2020.
3. Zeta paid $30,000 for production of a TV commercial.
Required:
Calculate Zetas maximum capital cost allowance for 2020.
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