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

The half year rule states that for the first year of ownership, only half of the CCA rate can be claimed. Therefore, the UCC amount used for the first year of CCA calculation is half of the original cost, or $25,000.

Ice Corporation Has Purchased a Class 10 Piece of Equipment