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Can anyone solve this exercise? Thank you A firm with a tax rate of 43% has just purchased a machine for $500,000 with allowable installation
Can anyone solve this exercise?
A firm with a tax rate of 43% has just purchased a machine for $500,000 with allowable installation costs amounting to an additional $50,000. The machine has an expected life of 8 years, at which point it can be salvaged for $100,000. The machinery is a class 39 item which has a CCA rate of 25%. What is the undepreciated capital cost of this item, rounded to the nearest dollar, at the end of the second year? Multiple Choice $328,158 $360,938 $400,000 $437,500 Thank you
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