At the beginning of year 1,XYZ bought a machine for $50,000.The machine is in class 43 with a CCA rate of 30%.Assuming that the machine is the only asset in the class,what is the UCC (undepreciated capital cost)for the machine class after CCA is claimed at the end of year 2?
A) $27,000
B) $27,500
C) $29,750
D) $50,000

Question

Quizplus · Accepted Answer

(.3*.5*50,000)= 7,500 (yr 1 CCA).Year 2 CCA = (50,000-7,500)*.3= 12,750.UCC = 50,000-7,500-12,750 = $29,750

At the Beginning of Year 1,XYZ Bought a Machine for $50,000.The