Question

Below presented table shows purchases of new capital assets by a small business and formation of its Undepreciated Capital Cost (UCC) account Year Purchases of new capital assets CCA UCC 1 $2,000 $300 $1,700 2 $1,000 $660 $2,040 3 $1,000 If this business is subject to a 10.5% tax rate and its MARR is 2%, what is the business's UCC at the end of the 3rd year? (Present your answer in dollars without the $ sign)

          Below presented table shows purchases of new capital assets by a small business and
formation of its Undepreciated Capital Cost (UCC) account
Year Purchases of new capital assets CCA UCC
1 $2,000 $300 $1,700
2 $1,000 $660 $2,040
3 $1,000
If this business is subject to a 10.5% tax rate and its MARR is 2%, what is the
business's UCC at the end of the 3rd year?
(Present your answer in dollars without the $ sign)

Below presented table shows purchases of new capital assets by a small business and
formation of its Undepreciated Capital Cost (UCC) account
Year Purchases of new capital assets CCA UCC
1 2,000300 1,700
21,000 6602,040
3 1,000
If this business is subject to a 10.5% tax rate and its MARR is 2%, what is the
business's UCC at the end of the 3rd year?
(Present your answer in dollars without the sign)

Added by Phillip J.

Principles of Economics

Gregory Mankiw 8th Edition

Instant Answer

Solved by Expert Felicia Rivera

Step 1

The CCA is calculated by multiplying the purchase amount by the CCA rate. In the third year, the purchase amount is $1,000 and the CCA rate is not given. We need to find the CCA rate for the third year. To do this, we can use the information given for the second Show more…

Show all steps

Thanks for your feedback!

Below is a table showing the purchases of new capital assets by a small business and the formation of its Undepreciated Capital Cost (UCC) account. Year | Purchases of new capital assets | CCA | UCC -----|-------------------------------|-----|----- 1 | $2,000 | $300| $1,700 2 | $1,000 | $660| $2,040 3 | $1,000 | | If this business is subject to a 10.5% tax rate and its MARR is 2%, what is the business's UCC at the end of the 3rd year?