FMT2 Problem: CCA - Tofu Inc.

FMT2 Problem: CCA - Tofu Inc.

Tofu Inc. purchased a building in 20x7 for $100,000. Tofu Inc. intended to use the building to

house one of its divisions. In 20x9, the building is sold for $100,000 after Tofu Inc. decided to

discontinue the division. Tofu Inc. did not own any other buildings. Maximum CCA was

claimed each year.

The CCA rate is 4% per year.

Required:

Determine the impact of the disposition to Tofu Inc.