Reference no: EM132829351

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:

Problem 1: Calculate Zeta's maximum capital cost allowance for 2020.