Fong Limited purchased an asset at a cost of $45,000 on March 1, 2023. The asset has
Question:
Fong Limited purchased an asset at a cost of $45,000 on March 1, 2023. The asset has a useful life of seven years and an estimated residual value of $3,000. For tax purposes, the asset belongs in CCA Class 8, with a rate of 20%.
(a) Calculate the CCA for each year, 2023 to 2026, assuming Fong’s asset is eligible for the Accelerated Investment Incentive, and that this is the only asset in Class 8.
(b) How would the calculation for each year from 2024 to 2026 change if the asset had been purchased in 2024?
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a Assuming purchased in 2023 b Assuming purchased in 2024 The Accelerated Investme...View the full answer
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Related Book For 
Intermediate Accounting Volume 1
ISBN: 9781119740469
13th Canadian Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
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