Final answer:
Calculating the maximum Capital Cost Allowance (CCA) for the first year depends on the applicable CCA rates and rules for office furniture, computers, and software, along with the cost of these assets. We cannot provide the exact amount without the current CCA rates, but typically, costs are aggregated and the rate is applied, considering the half-year rule.
Step-by-step explanation:
The sole proprietor who started a business and purchased office furniture, a computer, and application software has specific costs that can be used to calculate the Capital Cost Allowance (CCA) for the first year. The CCA is a tax deduction that Canadian businesses can claim for the depreciation of tangible property. The office furniture, computer, and software have different classifications under the CCA regulations, which determine the rate of depreciation they each qualify for. The maximum claim would depend on the applicable CCA rates, the half-year rule since the business started mid-year, and the total cost of these assets.
It's important to note that CCA rates and rules may change, and specific professional advice is necessary for accurate calculations. Without the precise rates specified, we cannot definitively calculate the maximum CCA claim for the first year. However, the process typically involves adding the costs of depreciable assets and applying the suitable CCA rate after considering the half-year rule.