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In April 2020 a company purchased a new automobile for business use for $50,000. In October...

In April 2020 a company purchased a new automobile for business use for $50,000. In October 2020 the company purchased specialized computer equipment for $20.000. The company has a December 31 year-end. Ignoring sales and provincial taxes, what is the máximum allowable capital cost allowance that the company may claim in 2020?

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Capital Cost Allowance (CCA) is an annual deduction in the Canadian income tax code that can be claimed on depreciable assets when figuring taxable income under the umbrella of the Income Tax Act. Claimed as a percentage of the asset's cost for a number of years, the CCA is typically allowed for purchases that are expected to last for several years, such as buildings. However, the deduction is not allowed in full for a single year; rather, the full cost is spread out over a number of years on tax returns.

SO in this case nothing is allowed as capital cost allowance only depreciation on these assets are allowed to be deducted from total income

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