Valdez Corporation commenced operations on January 1, 1999. The company's financial performance during its first year of operation was as follows:
• Sales revenues, $1,500,000.
• Labor, material, and overhead costs, $600,000.
• The company purchased a warehouse worth $500,000 in February. To finance this warehouse, the company issued $500,000 of long-term bonds on January 1, which carry an interest rate of 10%. The first interest payment occurred on December 31.
• For depreciation purposes, the purchase cost of the warehouse is divided into $100,000 in land and $400,000 in building. The building is a CCA Class 1 asset and is depreciated accordingly.
• On January 5, the company purchased $200,000 of equipment, which falls into CCA Class 43.
• The corporate tax rate is 40%.
(a) Determine the total CCA allowed in 1999.
(b) Determine Valdez's income taxes for 1999.