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What is the building capital cost allowance

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Question - One year ago, Prestige Company Ltd. purchased a new factory at a total cost of $1,500,000 (for the land and the building). The owner, Prescott, estimates that the factory will last for 35 years, at which time the salvage value will be $10,000. The CCA rate applied to the building is 4%. It is now the year end and Prescott must prepare the company's tax returns. If the income statement has a depreciation expense of $18,750 (using the straight line depreciation method), what is the building's capital cost allowance for the first year?

Reference no: EM133105074

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