Question
Q4. (20 marks) Date of purchase March 31, 2020 Capital cost $200,000 Estimated useful life 10 years Estimated residual value $20,000 CCA Class Class 10
Q4. (20 marks) Date of purchase March 31, 2020 Capital cost $200,000 Estimated useful life 10 years Estimated residual value $20,000 CCA Class Class 10 (30%) The company uses straight-line depreciation to the nearest month for accounting purposes. Instructions 1)what is the CCA for calendar 2020. (Show calculations.) 2) Assuming the UCC for this machine is $83,300. The company sells the machine on January 2, 2020 for $90,000, and does not replace it. The recapture of CCA or terminal loss would be? 3) Differentiate the impact of CCA versus Straight-line on the asset for the company in this question.
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