Calculate depreciation and CCA A machine costing $400,000 is acquired on October 1, 2014.Its estimated residual value is $40,000 and its expected life is eight years.The company has a calendar year end.The asset is a Class 8 asset with a maximum CCA rate of 20%. Instructions Calculate depreciation expense for 2014 and 2015 by each of the following methods:
a)Double declining-balance
b)Capital cost allowance

Question

Quizplus · Accepted Answer

The Answer of Calculate depreciation and CCA A machine costing $400,000 is acquired on October 1, 2014.Its estimated residual value is $40,000 and its expected life is eight years.The company has a calendar year end.The asset is a Class 8 asset with a maximum CCA rate of 20%. Instructions Calculate depreciation expense for 2014 and 2015 by each of the following methods:
a)Double declining-balance
b)Capital cost allowance

Calculate Depreciation and CCA a Machine Costing $400,000 Is Acquired