Question

2. A firm has recently purchased equipment at a cost of $250,000 with a CCA rate of 25%. Under the Half Year rule, what is the amount of depreciation that the firm can claim as a tax deductible expense in its second year?

Answer 1

Input Area:
CCA rate	25.00%
Initial value of asset pool	$250,000.00
Output Area:
Year	Opening UCC	CCA	Closing UCC
1	$250,000.00	$31,250.00	$218,750.00
2	$218,750.00	$54,687.50	$164,062.50
3	$164,062.50	$41,015.63	$123,046.88
4	$123,046.88	$30,761.72	$92,285.16
firm can claim as a tax deductible expense in its second year	$54,687.50