Longbow Lumber Is Purchasing a New Horizontal Resaw at a Cost

question 58

Multiple Choice

Longbow Lumber is purchasing a new horizontal resaw at a cost of $390,000.There is an additional $20,000 delivery and installation cost.The machine has a capital cost allowance (CCA) rate of 15%.What will be the CCA deduction for year 1?

• A)$195,000
• B)$205,000
• C)$61,500
• D)$29,250
• E)$30,750

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Definitions:

Intellectual Abilities

Cognitive capacities that include reasoning, problem-solving, planning, abstract thinking, complex idea comprehension, and learning from experience.

Biological Siblings

Individuals who share the same biological parents, fully related by blood through their mother and father.

Gene-environment Correlation

The concept that an individual's genes influence the environments to which they are exposed, thereby affecting their behavioral traits and health.

Athletic Skills

Abilities or proficiencies related to physical sports, exercise, or any form of physical activity.