Question #28

The construction of abuilding costing $12,0CI0,000 started i* Year I and was completed
and occupied in Year 2 (two years constructions). $8,000,000 of the construction costs
was incurred in Year I and the halance in Year 2.
Using the old rules or systern (5% CCA rate, declining balance method, full year rcrle and
no put-in-use)" what is the capital cost allowance {CCA) in Year 3?
:;ti*.i$551,000
b. $570,000
c. 556l ,000
d. $598,500
e. None ofthe above

I got the answer 910,100( for the CCA) but the answer should be A) 570,000 how is that? I used the old rules(so no put in place rule 5% CCA full year and everything--I followed the format of an practice exercise like how to solve similar problems but I can;t get this answer.