LiCheng's Enterprises just purchased some ﬁxed assets that belong in a 35% CCA class. The assets cost $1,901. What is the amount of the depreciation expense for year 2?

Question

Quizplus · Accepted Answer

The CCA rate for a 35% class is 35%. The depreciation expense for year 2 is 35% of the cost of the assets, which is $1,901 x 35% = $665.35. However, the question asks for the amount of the depreciation expense, which is the absolute value of the depreciation expense. Therefore, the answer is $665.35.

LiCheng's Enterprises Just Purchased Some ﬁXed Assets That Belong in a 35