Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A proprietorship has a calendar fiscal year and acquires a machine on April 1 of the current year. The machine has a cost of $

A proprietorship has a calendar fiscal year and acquires a machine on April 1 of the current year. The machine has a cost of $55,000. The proprietor pays a contractor $21,500 to install the machine and pays a non-refundable provincial sales tax of $9,000. The machinery is Class 8 equipment with a CCA rate of 20%. Assuming that the opening UCC for Class 8 assets is $0, what is the maximum CCA that can be deducted for this machine in the current fiscal year?
A. $17,100
B. $22,950
C. $8,550
D. $25,650
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Markets Products And Marketing

Authors: David Parmerlee

1st Edition

0658001337, 978-0658001338

More Books

Students also viewed these Accounting questions