Edleson Inc

Essay

Edleson Inc. is located in a province that does not participate in the HST program. During its current fiscal period, Edleson Inc. purchases an office building for $1,450,000 (excluding GST), including a payment for the land of $320,000. It spends an additional $347,400 (excluding GST)for equipment to be used in the building. The building will be used 35 percent to produce fully taxable supplies and 65 percent for exempt supplies. The equipment will be used 42 percent for taxable supplies and 58 percent for exempt supplies. For accounting purposes, the building will be amortized over 30 years, while the equipment will be written off over 12 years.
Determine the input tax credits that Edleson Inc. can claim as a result of these capital expenditures.