At the Beginning of Year 1,XYZ Bought a Machine for $50,000.The

question 36

Multiple Choice

At the beginning of year 1,XYZ bought a machine for $50,000.The machine is in class 43 with a CCA rate of 30%.Assuming that the machine is the only asset in the class,what is the CCA that XYZ can claim for the fiscal year ended at the end of year 2?

• A) $7,500
• B) $11,250
• C) $12,750
• D) $15,000

---

Definitions:

Process Costing

A costing method used in industries where production is continuous, and costs are allocated to masses of similar units to compute an average cost per unit.

Conversion Costs

Expenses incurred in the process of converting raw materials into finished goods, typically including labor and overhead.

Welding Department

A specialized department within manufacturing focused on joining materials together using welding techniques to produce finished goods or parts.

Equivalent Unit

A measure used in cost accounting to express the amount of work done on partially completed units in terms of fully completed units.