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Tarantula Corp. reported the following information about the only machine that it owns:
Date of purchase March 31, 2020
Capital cost $200,000
Estimated useful life 10 years
Estimated residual value $20,000
CCA Class Class 10 (30%)
Problem 1: Tarantula uses straight-line depreciation to the nearest month for accounting purposes. Assuming Tarantula always takes the maximum CCA, what is the CCA for calendar 2020?
a. $22,500
b. $30,000
c. $45,000
d. $60,000
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