On June 1 of year 1,XYZ bought office equipment for $50,000.The equipment falls into class 8 with a CCA rate of 20%.Assuming that the equipment is the only asset in that class,what is the CCA that XYZ can claim for the fiscal year at the end of year 1?
A) $4,167
B) $5,833
C) $5,000
D) $10,000

Question

Quizplus · Accepted Answer

The CCA for the first year is calculated using the half-year rule. The undepreciated capital cost (UCC) is $50,000, and the CCA rate is 20%. The half-year rule means only half of the CCA is claimed in the first year: $50,000 * 20% * 0.5 = $5,000.

On June 1 of Year 1,XYZ Bought Office Equipment for $50,000.The