During 2019, XYZ Inc

question 38

Multiple Choice

During 2019, XYZ Inc.bought a tractor for $50,000, which belongs in class 10 with a CCA rate of 30%.Assuming that the tractor is the only asset in the class, what is the maximum CCA that XYZ Inc.can claim for 2020 with respect to the tractor ?

• A)$7,500
• B)$22,500
• C)$8,250
• D)$15,000

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Definitions:

Customer Restrictions

Limitations or specific conditions imposed on the purchasing, use, or selection process by customers, often by companies or regulatory bodies.

Interstate Commerce Clause

A provision in the U.S. Constitution that gives Congress the power to regulate commerce between states.

Sherman Act

An important United States antitrust law enacted in 1890 to prohibit monopolies and practices that restrain trade or commerce among states.

Congress

The national legislative body of the United States, made up of the House of Representatives and the Senate.