Roslin Corp. spends $596,000 on new machinery for a new project. The machine falls into a 40% CCA class (half-year rule applies) and has a 9-year useful life. The company expects to use the machine for two years and then sell it for $X, which is equivalent to the remaining UCC (undepreciated capital cost) at the end of year 2. What is $X?

Answer rating: 100% (QA)

Using the halfyear rule the CCA rate for a 40 class asset is 20 per year Therefore the CCA clai... View the full answer