Andeo Corporation purchased a truck at the beginning of 2017 for $48,000. The truck is estimated to

Question:

Andeo Corporation purchased a truck at the beginning of 2017 for $48,000. The truck is estimated to have a residual value of $3,000 and a useful life of 275,000 km. It was driven for 52,000 km in 2017 and 65,000 km in 2018.

(a) Calculate depreciation expense for 2017 and 2018 using the unit of production method.

(b) For tax purposes, the asset is depreciated at a rate of 30%. Calculate the Capital Cost Allowance (CCA) for 2017 and 2018.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...