5401 (1) For the purposes of paragraph 5400(1)(a), the amount to be applied to reduce the capital cost of a property shall not exceed the lesser of
(a) the amount by which
(i) the capital cost of the property
exceeds
(ii) all amounts that would have been allowed to the taxpayer in respect of the property, if it had been the only property that was included in a prescribed class, at the rate that was allowed to him in respect of property of the class in which it was included under regulations made under paragraph 20(1)(a) of the Act for the taxation years prior to the year in which the debt or obligation was settled or extinguished; and
(b) the amount by which
(i) the undepreciated capital cost of the class at the time the debt or obligation was settled or extinguished
exceeds
(ii) the amount or the aggregate of amounts, if any, that has already been determined under this subsection in respect of another property of the class at the time referred to in subparagraph (i).
(2) For the purposes of paragraph 5400(1)(b), the amount to be applied to reduce the capital cost of a property shall not exceed
(a) the amount by which the capital cost of the property
exceeds
(b) the amount that was allowed to the taxpayer by virtue of Part XVII in respect of the property before the debt or obligation was settled or extinguished.
(3) For the purposes of paragraphs 5400(1)(c), (d) and (e), the amount to be applied to reduce the adjusted cost base of a property shall not exceed the amount by which
(a) the aggregate of the cost to the taxpayer of the property and all amounts required by subsection 53(1) of the Act to be included in computing the adjusted cost base to him of that property
exceeds
(b) the aggregate of all amounts required by subsection 53(2) of the Act (except paragraph (c) thereof) to be deducted in computing the adjusted cost base to him of that property,
at the time the debt or obligation was settled or extinguished.
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