Calculate Depreciation and CCA Five Identical Vehicles Which Cost $500,000

question 49

Essay

Calculate depreciation and CCA Five identical vehicles which cost $500,000 (total)are acquired on April 1, 2014.Their estimated residual value is $20,000 and expected life is eight years.These assets are Class 10 with a maximum CCA rate of 30%.The company has a December 31 year end. Instructions Calculate the depreciation expense/CCA (to the nearest dollar)by each of the following methods:
a)Straight-line for 2014
b)Double declining-balance for 2015
c)Maximum Capital cost allowance for 2015

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Definitions:

Mobile Service

Telecommunication services provided through a network of base stations, enabling users to maintain communication without a fixed connection point.

Average Income

The mean income of a group, calculated by dividing the total income of the group by the number of individuals or entities in that group.

Total Revenue

The total income a business receives from selling its goods or services, calculated by multiplying the price per unit by the number of units sold.

Demand Curve

A graphical representation showing the relationship between the quantity of a good that consumers are willing and able to purchase and its price.