A $95,000 investment is to be amortized for tax purposes using the maximum CCA available.
a. If the investment represents a fleet of automobiles for a telephone utility, what will be the allowable CCA rate?
b. How much will the addition of the automobiles increase the allowable dollar CCA in Year 1? in Year 2?
c. If the investment had been for machinery, what difference would that have made in the CCA rate allowed?

d. What difference will it make when the cars are scrapped for next to nothing after five years? (The company's autos tend to accumulate very high mileage, and the company has adopted the practice of giving them away to interested employees when their usefulness to the company ceases.)