A $40,000 Asset Was Purchased and Classified as a Class

question 105

Multiple Choice

A $40,000 asset was purchased and classified as a Class 10 asset for CCA purposes. If the CCA rate is 30%, calculate CCA for year 3.

• A) $7,140
• B) $8,250
• C) $9,360
• D) $10,470
• E) $11,580

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Definitions:

Radioactive Iodine

A form of iodine that emits radiation, used in medical treatments and diagnoses, especially for thyroid disorders.

Thyroid Gland

An endocrine gland in the neck that secretes hormones regulating growth and metabolism.

Pituitary Gland

A pea-sized gland located at the base of the brain, important in controlling growth, metabolism, and regeneration, often called the "master gland."

Brain

The organ of the central nervous system located in the skull, responsible for coordinating sensory information and directing motor responses; also the center of thought and emotion.