(Solution) - Refer to Problem 15C 2 Assume the identical set of facts -(2025 Original AI-Free Solution)

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Academic Level: Undergrad. (yrs 3-4)

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Refer to Problem 15C-2. Assume the identical set of facts, but in addition pretend that the machine falls into a new CCA class for taxation purposes. Let?s say it falls into Class 44, which has a rate of 60%.
a. Calculate the maximum allowable CCA that the company will be permitted to claim for each of the five taxation years of 2013 through 2017.
b. Assuming that the company claims the maximum CCA each year, what is the unamortized capital cost for this asset at the end of 2017 after the CCA for that year is claimed?
c. Assume that in 2018 the machine is not sold, but remains idle after producing the final production run of 800 square metres of PCBs by March 31 of that year. How much CCA can the company claim in the 2018 taxation year?