Question
A company is deciding between purchasing two pieces of equipment, each costing $600,000. One equipment belongs to a class with a CCA rate of 20%,
A company is deciding between purchasing two pieces of equipment, each costing $600,000. One equipment belongs to a class with a CCA rate of 20%, the other belongs to a class with a CCA rate of 30%. What would be the absolute value (i.e., only put the difference as a positive) of the difference between the two equipment's undepreciated capital cost (UCC) as the end of Year 2? Assume the half year rule applies. Round to the nearest dollar.
Question 44 options: $75,000
$50,000
$30,000
$60,000
$45,000
A company is deciding between purchasing two pieces of equipment, each costing $600,000. One equipment belongs to a class with a CCA rate of 20%, the other belongs to a class with a CCA rate of 30%. What would be the absolute value (i.e., only put the difference as a positive) of the difference between the two equipment's undepreciated capital cost (UCC) as the end of Year 2? Assume the half year rule applies. Round to the nearest dollar.
$75,000 | |
$50,000 | |
$30,000 | |
$60,000 | |
$45,000 |
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Management Accounting Text Problems And Cases
Authors: M Y Khan, P K Jain
6th Edition
125902668X, 978-1259026683
