Reference no: EM132570472

A company has a January 1, 2020 balance for CCA class 50 of $79,000. During 2020, the last asset of Class 50 was sold for proceeds of $55,000. That asset had a capital cost of $175,000. No further assets were acquired before the end of the year, and no other assets of this class was owned by the company at the end of the year.

Question 1: Which of the following answers corresponds to the maximum deduction allowed in relation to the company's Class 50 assets for the year 2020?

Option 1: $24,000

Option 2: $13,200

Option 3: $3,500

Option 4: $22,550

Option 5: $28,325

Option 6: $43,450

Option 7: $1,925

Option 8: None of the choices shown.