A $40,000 asset was purchased and classified as a Class 10 asset for CCA purposes. If the CCA rate is 30%, calculate CCA for year 1.

Name: A $40,000 asset was purchased and classified as a Class 10 asset for CCA purposes. If the CCA rate is 30%, calculate CCA for year 1.
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Quizplus · Accepted Answer

For Class 10 assets, the half-year rule applies, meaning only half of the asset's cost is eligible for CCA in the first year. Therefore, the CCA calculation for year 1 is: $40,000 * 50% * 30% = $6,000.

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