On January 1, 2014, the Rose Company purchased a machine costing $100,000. The machine is a Class 8 asset for tax purposes with a CCA rate of 20%. It has an estimated $20,000 residual value at the end of its economic life. Assuming the company uses the capital cost allowance method; calculate the amount of CCA deduction for tax purposes for the year 2014. Rose Company has a calendar year-end and adjusting entries are only made at year-end.

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The Answer of On January 1, 2014, the Rose Company purchased a machine costing $100,000. The machine is a Class 8 asset for tax purposes with a CCA rate of 20%. It has an estimated $20,000 residual value at the end of its economic life. Assuming the company uses the capital cost allowance method; calculate the amount of CCA deduction for tax purposes for the year 2014. Rose Company has a calendar year-end and adjusting entries are only made at year-end.

On January 1, 2014, the Rose Company Purchased a Machine