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Your 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%,
Your 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.
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