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:

Post-Anesthesia Care Unit (PACU)

A specialized hospital ward where patients are monitored and recover immediately after anesthesia and surgical procedures.

Surgical Complications

Unexpected problems or adverse events that can occur during or after surgery, which can affect the outcome or recovery of the patient.

Preoperative Phase

The period before a surgical operation begins, involving patient assessments and preparation for surgery.

Sterile Field

A specific area, free of all microorganisms, used during medical procedures to prevent infection.