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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For Class 10 assets, the half-year rule applies in the first year, meaning only half of the asset's cost is eligible for CCA. Therefore, the CCA for year 1 is 30% of $20,000 (half of $40,000), which equals $6,000.

A $40,000 Asset Was Purchased and Classiﬁed as a Class