A proprietorship has a calendar fiscal year and acquires a machine on April 1 of the current year. The machine has a cost of $54,000. The proprietor pays a contractor $19,000 to install the machine and pays a non-refundable provincial sales tax of $8,600. The machinery is Class 8 equipment with a CCA rate of 20%. Assuming that the opening UCC for Class 8 assets is $0, what is the maximum CCA that can be deducted for this machine in the current fiscal year? A. $16,320 B. $24,480 O C. $8,160 D. $21,900

A proprietorship has a calendar fiscal year and acquires a machine on April 1 of the current year. The machine has a cost of $54,000. The proprietor pays a contractor $19,000 to install the machine and pays a non-refundable provincial sales tax of $8,600. The machinery is Class 8 equipment with a CCA rate of 20%. Assuming that the opening UCC for Class 8 assets is $0, what is the maximum CCA that can be deducted for this machine in the current fiscal year? A. $16,320 B. $24,480 O C. $8,160 D. $21,900

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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