Canadian Donuts Is Looking at a New Investment Opportunity,which Will

question 113

Multiple Choice

Canadian Donuts is looking at a new investment opportunity,which will require the purchase of a capital asset of $1 million and additional raw materials inventory of $50,000.The project is expected to generate operating revenue of $750,000 per year,and the associated operating expenses are estimated at $350,000 per year.The project has a five-year economic life.This capital asset belongs to asset class 8,which has a CCA rate of 20 percent.What is the CCA expense for year 3?

• A) $115,200
• B) $128,000
• C) $144,000
• D) $180,000

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Definitions:

Detritivores

Organisms that feed on dead organic material, particularly plant detritus, playing a crucial role in nutrient recycling.

Omnivores

Organisms that consume both plant and animal matter as part of their diet.

Carnivores

Animals that feed on other animals.

Biogeochemical Cycle

Circulating pathway of elements, such as carbon and nitrogen, involving exchange pools, storage areas, and biotic communities.