Calculate Depreciation and CCA a Machine Costing $400,000 Is Acquired

question 487

Essay

Calculate depreciation and CCA A machine costing $400,000 is acquired on October 1, 2014.Its estimated residual value is $40,000 and its expected life is eight years.The company has a calendar year end.The asset is a Class 8 asset with a maximum CCA rate of 20%. Instructions Calculate depreciation expense for 2014 and 2015 by each of the following methods:
a)Double declining-balance
b)Capital cost allowance

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Definitions:

Epidermis

The outermost layer of skin, providing a waterproof barrier and creating our skin tone.

Permeable

Permeable describes a material or membrane that allows substances (such as liquids or gases) to pass through it.

Nourished

Being provided with the food or other substances necessary for growth, health, and good condition.

Lamellar Bodies

Membrane-bound organelles found in certain cells, such as type II pneumocytes, containing lipids and proteins important for pulmonary surfactant production.