Reference no: EM132695414

A company has a January 1, 2020 balance for CCA class 53 of $150,000. During 2020, the company acquired additional Class 53 assets for a total cost of $2,200,000. Also, one of the several Class 53 assets was sold during the year for proceeds of $50,000. It had a cost of $200,000.

Problem 1: Which of the following answers corresponds to the maximum CCA allowed for the company's Class 53 for the year 2020?

Option 1: $1,687,500

Option 2: $1,700,000

Option 3: None of the choices shown.

Option 4: $2,275,000

Option 5: $612,500

Option 6: $2,250,000

Option 7: $2,225,000

Option 8: $2,165,000