At the Beginning of Year 1,LMOT Company Had the Following

question 47

Multiple Choice

At the beginning of year 1,LMOT Company had the following UCC balances:
Class 43,CCA rate = 30%,UCC = $25,000
Class 8,CCA rate = 20%,UCC = $10,000
During Year 1,LMOT neither bought nor sold any assets.The total CCA that LMOT can claim in Year 1 is:

• A) $4,750
• B) $7,000
• C) $9,500
• D) $10,500

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Definitions:

Negative Reinforcement

A form of operant conditioning where a response is strengthened by stopping, removing, or avoiding a negative outcome or aversive stimulus.

Internal Revenue Service

The Internal Revenue Service (IRS) is a U.S. government agency responsible for the collection of taxes and enforcement of tax laws.

Penalty

A punishment imposed for violating a rule, law, or agreement.

Negative Reinforcement

A process in operant conditioning where a response is strengthened by stopping, removing, or avoiding a negative outcome or aversive stimulus.