Athabasca Ag Is Purchasing 1,000 Grain Bins at a Cost

question 56

Multiple Choice

Athabasca Ag is purchasing 1,000 grain bins at a cost of $40,000 each.Each bin also has a $5,000 delivery and installation cost,and the bins have a capital cost allowance (CCA) rate of 25%.What will be the incremental undepreciated capital cost (UCC) for year 2?

• A)$39,375,000
• B)$45,000,000
• C)$16,875,000
• D)$22,500,000
• E)$5,625,000

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Definitions:

Ration Health Care

The controlled distribution of scarce healthcare resources, where decisions are made regarding who gets what level of care based on various factors, often due to limitations in resources or funding.

Expanded Coverage

The extension of insurance or service benefits to include more conditions, individuals, or circumstances than originally covered.

Equilibrium Price

The equilibrium price is the price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, resulting in a stable market condition.

Health Care Demanded

The amount of medical services that people are ready and capable of buying at a specific price point.