Problem
• Mark Simmon's Wholesale began operations in 2020, and all the income is reported as business income in the tax return. Mark purchased assets in different classes, and signed lease agreement in 2020. Mark also registered his business as a GST registrant as he foresees that the sales would exceed the threshold in the first quarter.
• Mark signed a lease for 6 years for a building when the business began. The building is in an excellent location and is estimated to be worth $700,000. Mark has an option to renew the lease for an additional 2 years. Mark spent $240,000 in 2020 on improvements to the leased building at the beginning of the year.
• Mark purchased land and a building adjacent to his business for $88,000 in 2020. Mark has chosen to take 4% CCA on the building.
• Mark purchased several small tools in 2020 that are used to maintain the rental tools. The total cost of these tools was $5,000 and each tool cost under $500.
• A delivery van costing a total of $38,000 was purchased in 2020, to be used solely in the business.
• Mark furnished the business at a cost of $12,000 with Class 8 assets.
• A computer costing $1,200 was purchased for tracking sales and inventory.
• Mark purchased a $42,000 passenger vehicle to be used for the business. In 2020, the car was driven 38,000 km., 24,000 km were for business. (The car was to be used exclusively for business in the following years.)
• Incorporation costs for the business in 2020 were $4,400.
• The business was very successful in the first year so Mark chose to use all of the CCA that was available in 2020.
The following transactions occurred in 2021:
• Mark sold the delivery truck for $37,000, and immediately purchased a newer and larger model for $50,000 .
• New shelving was purchased for the reception area, at a cost of $2,000.
• Sold the passenger vehicle at $20,000 in 2021.
• Maximum CCA was claimed for the year.
Task
Calculate the capital cost allowance per class claimed by the company in 2020 and 2021. All of the assets qualify as Accelerated Investment Incentive Property.