Longbow Lumber Is Purchasing a New Horizontal Resaw at a Cost

question 58

Multiple Choice

Longbow Lumber is purchasing a new horizontal resaw at a cost of $390,000.There is an additional $20,000 delivery and installation cost.The machine has a capital cost allowance (CCA) rate of 15%.What will be the CCA deduction for year 1?

• A)$195,000
• B)$205,000
• C)$61,500
• D)$29,250
• E)$30,750

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Definitions:

Acetic Acid

An organic compound with the formula CH3COOH, best known for giving vinegar its sour taste and pungent smell.

Iodine Solution

A chemical solution used as a disinfectant, antiseptic, or in iodometry; it is known for its ability to kill bacteria and other pathogens.

Cervix

The entrance into the uterus.