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A $95,000 investment is to amortized for tax purposes using themaximum CCA available.
If the investment represents a fleet of automobiles for a telephoneutility, what will be the allowable CCA rate?
How much will the addition of the automobiles increase theallowable dollar CCA in Year 1? Year 2?
If the investment had been for machinery, what difference wouldthat have made in the CCA rate allowed?
What difference will it make when the cars are scrapped for next tonothing after five years? (the company’s autos tend to accumulatevery high mileage, and the company has adopted the practice ofgiving them away to interested employees when their usefulness tothe company ceases)

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Beverley Smith
Beverley SmithLv2
28 Sep 2019

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