During the taxation year ending December 31, 2020, Enco Ltd. makes current expenditures of $722,000 on which a 10 percent investment tax credit is available. They also acquire $942,000 in Class 8 assets on which a 10 percent investment tax credit is available. Describe the 2020 and 2021 tax consequences associated with making these expenditures and claiming the related investment tax credits. Include in your solution the CCA for 2020 and 2021.

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The Answer of During the taxation year ending December 31, 2020, Enco Ltd. makes current expenditures of $722,000 on which a 10 percent investment tax credit is available. They also acquire $942,000 in Class 8 assets on which a 10 percent investment tax credit is available. Describe the 2020 and 2021 tax consequences associated with making these expenditures and claiming the related investment tax credits. Include in your solution the CCA for 2020 and 2021.

During the Taxation Year Ending December 31, 2020, Enco Ltd