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wallyboy wallyboy
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6 months ago
Canadian Donuts is looking at a new investment opportunity, which will require the purchase of a capital asset of $1 million and additional raw materials inventory of $50,000. The project is expected to generate operating revenue of $750,000 per year, and the associated operating expenses are estimated at $350,000 per year. The project has a five-year economic life. This capital asset belongs to asset class 8, which has a CCA rate of 20%. How much CCA would Canadian Donuts claim in year 3, assuming half-year rule is applicable for CCA in year 1?

▸ $180,000

▸ $128,000

▸ $144,000

▸ $115,200
Textbook 
Corporate Finance

Corporate Finance


Edition: 5th
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blf1210blf1210
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6 months ago
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