On July 1, 2020, Frodam Ltd. acquires a used property at a cost of $3,400,000. This total cost is allocated $800,000 to the land and $2,600,000 to the building. In order to assist with this purchase and encourage the Company's move to this location, the provincial government has provided a grant of $500,000 to assist in the acquisition of the building. What is the maximum amount of CCA that Frodam can deduct on this building for the taxation year that ends on December 31, 2020?

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The Answer of On July 1, 2020, Frodam Ltd. acquires a used property at a cost of $3,400,000. This total cost is allocated $800,000 to the land and $2,600,000 to the building. In order to assist with this purchase and encourage the Company's move to this location, the provincial government has provided a grant of $500,000 to assist in the acquisition of the building. What is the maximum amount of CCA that Frodam can deduct on this building for the taxation year that ends on December 31, 2020?