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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Definitions:

Embryonic Period

The period from 2 to 8 weeks after fertilization, during which the major organs and structures of the organism develop.

Zygote

Cell resulting from the uniting of the ovum and sperm.

Umbilical Cord

The flexible cordlike structure connecting a fetus to the placenta, delivering nutrients and oxygen and removing waste.

Psychological Closeness

The perception of being emotionally intimate or connected with another person or group.