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Varuna Doshi had rental income before CCA of $ 3 , 0 0 0 in Year 1 . The UCC at the beginning of Year

Varuna Doshi had rental income before CCA of $3,000 in Year 1. The UCC at the beginning of Year 1 was $50,000(Class 1-4%). In Year 2 the rental income before CCA was $1,000. Varuna chose to expense the allowable CCA on the rental property both years. Which of the following statements is true?

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