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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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