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  3. motorsport is buying an asset that costs $730,000

Motorsport is buying an asset that costs $730,000 and can be depreciated at 20% per...

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Accounting

Motorsport is buying an asset that costs $730,000 and can be depreciated at 20% per year, (class 8), over its 8-year life. The asset is to be used in a 3-year project. At the end of the project, the asset can be sold for $320,000. The company faces a tax rate of 26%. The sale of this asset will close the asset class. What is the charge that Motorsport can take as CCA in the third year of the asset? Multiple choice $73,000 $116,800 $131,400 $146,000 $105,120

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