What is the maximum CCA that can be deducted

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Question - A proprietorship has a calendar fiscal year and acquires a machine on April 1, 2020. The machine has a cost of $52,000. The proprietor pays a contractor $17,000 to install the machine and pays a non-refundable provincial sales tax of $5,000. The machinery is Class 8 equipment with a CCA rate of 20%. Assuming that the opening UCC for Class 8 assets is $0, what is the maximum CCA that can be deducted for this machine in fiscal year 2020?

A. $14,800

B. $7,400

C. $22,200

D. $20,700

Reference no: EM132815859

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