Ice Corporation has purchased a Class 10 piece of equipment for a cost of $50,000 with a CCA rate of 30%. Under the half year rule, the UCC amount used to calculate the first year CCA is:

Question

Quizplus · Accepted Answer

Under the half-year rule, only half of the cost of the asset acquired in the year can be used to calculate the Capital Cost Allowance (CCA) for that year. Therefore, for a $50,000 piece of equipment, the amount used to calculate the first year's CCA is $25,000 (half of $50,000).

Ice Corporation Has Purchased a Class 10 Piece of Equipment