Use the Information Below to Answer the Following Question(s)

question 31

Multiple Choice

Use the information below to answer the following question(s) .Albernie Ltd.purchased a CCA Class 8 (CCA rate of 20%) item of equipment for $90,000.The equipment was the only item in the Class 8 capital cost allowance pool.The equipment is expected to generate savings in the amount of $40,000 per year.The company uses straight-line depreciation, estimates a 3 year useful life with $20,000 salvage value for the new equipment.The tax rate is 35%, and Albernie has a required rate of return of 9.0%.
-What is the maximum capital cost allowance that Albernie Ltd.can claim in year 2, if the maximum was claimed in year 1?

• A)$11,200
• B)$12,600
• C)$18,000
• D)$16,200
• E)$14,400

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Definitions:

Hearing

The ability to perceive sound by detecting vibrations through the ear, an essential sense for communication and awareness of the environment.

Vision

The faculty or state of being able to see, as well as the interpretation by the brain of visual information received from the eyes.

Integrate Touch

Involves incorporating tactile sensory experiences into activities or therapies to enhance learning or development, especially in children.

Vision

The ability to see, which is essential for perceiving the environment, involving the eyes’ capability to detect light and interpret it as images.