Wilf Company acquired an additional Class 10 (30% declining balance)asset for $60,000.The UCC at the beginning of the year was $100,000.The maximum CCA in the current year is
A)$48,000.
B)$24,000.
C)$45,000.
D)$37,500.
E)$39,000.

Question

Quizplus · Accepted Answer

The maximum CCA is calculated as 30% of the UCC at the beginning of the year plus half of the net additions. The UCC is $100,000, and the net addition is $60,000. The half-year rule applies to the addition, so the CCA is 30% of ($100,000 + $30,000) = $39,000.

Wilf Company Acquired an Additional Class 10 (30% Declining Balance)asset