A proprietorship has a calendar fiscal year and acquires a machine on April 1 this year.
The machine has a cost of 48,000. The proprietor pays a contractor $17,000 to install the machine and pays a non-refundable provincial sales tax of $5,500. 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 this fiscal year?
A. $21,150
B. $7,050
C. $19,500
D. $14,100
