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

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