Reference no: EM132935550

Creator Ltd. has a December 31 year-end. As of January 1, 2020, Creator Ltd. had the following UCC balances for its various tangible assets:

Class 8 220,00
Class 10 120,00

Other information relating to Creator Ltd.'s tangible assets is as follows:

• The January 1, 2020 UCC balance in Class 01 reflected a single building that was acquired in 2016 for $940,000. Of that total, $240,000 was allocated to the land on which the building was situated. It was a new building used 50% for manufacturing and processing and 50% for office space. It was allocated to a separate Class 01. On November 13, 2020, the building and land were sold for $1,100,000. At the time of sale, the land was valued at Creator Ltd. has a December 31 year-end. As of January 1, 2020, Creator Ltd. had the following UCC balances for its various tangible assets: $560,000.
• A new building was purchased on December 13, 2020 at a cost of $880,000, with an amount of $140,000 of that total being allocated to the land on which the building was situated. The new building is used 50% for manufacturing and processing and 50% for office space. It is allocated to a separate Class 01.
• On March 04, 2020, Creator Ltd. acquired office furniture for $90,000. As a result of trading in furniture, Creator Ltd. received a trade in allowance of $40,000, resulting in a net cost for the new furniture of $50,000. The capital cost of the furniture that was traded in was $55,000.
• The January 1, 2020 balance in Class 10 reflects nine vehicles that were being used by Creator Ltd.'s sales staff. Their original cost totaled $380,000. Creator Ltd. decided it would be more economical to provide their sales staff with leased vehicles. To this end, the nine vehicles were sold for proceeds of $140,000 on September 09, 2020. The amount received for each vehicle was less than its capital cost.
• On April 10, 2020, Creator Ltd. acquired a Mercedes, which was used solely by the company's president. The cost of this vehicle was $290,000. The president drove it in 2020: 70,000 kilometres driven, of which only 10,000 kilometres involved employment duties. The president is not a shareholder of Creator Ltd.
• Some of Creator Ltd.'s business is conducted out of a building that is leased. The lease, which had an initial term of 6 years, can be renewed for 2 additional years at the end of the initial term. Immediately after the lease was signed on January 1, 2018, Creator Ltd. spent $280,000 on leasehold improvements. During July 2020, an additional $240,000 was spent upgrading this property.
• During 2016, Creator Ltd. purchased a franchise. The franchise was purchased on August 1, 2016, cost $62,000, and had a legally limited life of 8 years.
• Creator Ltd. took maximum CCA deductions in all years.

Required:

Problem 1: Calculate Creator Ltd.'s maximum CCA for the year ending December 31, 2020.