We need your help deciding which amortization method would be best for us to use. I’m thinking that we should use the CCA rules instead of the straight-line method for both financial and tax purposes. We could save lots of dollars! Could you verify my decision (or not) and work up the numbers for me based on the following:
Cost……………………………..$20,000
Life……………………………... 5 years
Residual…………………………. $5,000