2 years ago

Genesee Organics has just bought a new packing machine for its warehouse.

Business

1 answer:

Tcecarenko [31]2 years ago

5 0

Answer:

CCA for year 2 is $164,062.50

Explanation:

Total cost of machine = $750,000

CCA rate = 25%

CCA in year 1 = (Total cost / 2) * CCA rate

CCA in year 1 = ($750,000/2)*0.25

CCA in year 1 = $93,750

For year 2, CCA = (Total cost - CCA in year 1) *CCA rate

For year 2, CCA = ($750,000 - $93,750)*0.25

For year 2, CCA = $164,062.50

Hence, CCA for year 2 is $164,062.50

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