Trekker Trash & Recycling Ltd. bought a prefabricated building at a cost of $150,000 to house partially processed materials. The building was erected at the end of March, and it's expected lifetime is 15 years. Buildings have a 4% CCA rate. What is the maximum amount of CCA can Trekker Trash claim for the fiscal year at its end in December?

Question

Quizplus · Accepted Answer

The CCA for the first year is calculated using the half-year rule. The building cost is $150,000, and the CCA rate is 4%. The half-year rule applies, so the CCA is 4% of $75,000 (half of $150,000), which equals $3,000.