Can someone explain to me how is the answer $24480? I want a detailed explanation to understand the logic. A proprietorship has a calendar fiscal year and acquires a machine on April 1 of the current year. The machine has acost of $54,000. The proprietor pays a contractor $19,000 to install the machine and pays a non-refundable provincialsales tax of $8,600. The machinery is Class 8 equipment with a CCA rate of 20%. Assuming that the opening UCC forClass 8 assets is $0, what is the maximum CCA that can be deducted for this machine in the current fiscal year?A. $16,320B. $24,480O C. $8,160D. $21,900

Maximum CCA (Capital Cost Allowance) is the highest allowable deduction for depreciation that a…

Answered: pro tor Ship as a calendar

Business

Accounting

pro tor Ship as a calendar

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Can someone explain to me how is the answer $24480? I want a detailed explanation to understand the logic.

A proprietorship has a calendar fiscal year and acquires a machine on April 1 of the current year. The machine has a
cost of $54,000. The proprietor pays a contractor $19,000 to install the machine and pays a non-refundable provincial
sales tax of $8,600. The machinery is Class 8 equipment with a CCA rate of 20%. Assuming that the opening UCC for
Class 8 assets is $0, what is the maximum CCA that can be deducted for this machine in the current fiscal year?
A. $16,320
B. $24,480
O C. $8,160
D. $21,900

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