Longbow Lumber Is Purchasing a New Horizontal Resaw at a Cost

question 57

Multiple Choice

Longbow Lumber is purchasing a new horizontal resaw at a cost of $375,000.There is an additional $10,000 delivery and installation cost.The machine has a capital cost allowance (CCA) rate of 20%.What is the incremental undepreciated capital cost (UCC) for year 2?

• A)$375,000
• B)$337,500
• C)$385,000
• D)$346,500
• E)$192,500

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Poverty Line

The minimum level of income deemed adequate in a particular country to sustain a standard of living.

Equitable Hourly Income

The concept of ensuring fair and just wages for hours worked, considering factors like skill level, job difficulty, and market rates.

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The lowest legal wage that can be paid to most workers.