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Longbow Lumber Is Purchasing a New Horizontal Resaw at a Cost

Question 58

Multiple Choice

Longbow Lumber is purchasing a new horizontal resaw at a cost of $390,000.There is an additional $20,000 delivery and installation cost.The machine has a capital cost allowance (CCA) rate of 15%.What will be the CCA deduction for year 1?


A) $195,000
B) $205,000
C) $61,500
D) $29,250
E) $30,750

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