Longbow Lumber Is Purchasing a New Horizontal Resaw at a Cost

question 39

Multiple Choice

Longbow Lumber is purchasing a new horizontal resaw at a cost of $450,000.There is an additional $15,000 delivery and installation cost.The machine has a capital cost allowance (CCA) rate of 25%.What is the incremental undepreciated capital cost (UCC) for year 1?

• A)$232,500
• B)$450,000
• C)$225,000
• D)$465,000
• E)$435,000

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Salvation Army

A Christian denominational church and international charitable organization known for its humanitarian aid work, including relief efforts for the poor and disaster victims.

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The transition from one century to the next; often used to specify the period around the 19th to 20th centuries, characterized by significant social and technological changes.

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