Green Day Packers (GOP) purchased a computer for its back office operations in 2011 (assume 45% CCA)
Question:
Green Day Packers (GOP) purchased a computer for its back office operations in 2011 (assume 45% CCA) for $5,000. Because of expanding operations, GOP purchased two additional computers in 2013 for $4,000 each. By 2014, the original computer was considered to be too slow and was sold for $800. One year later the company decided to sell all its computer hardware for $1,500 and outsource its operations. Calculate GOP's UCC and maximum CCA for each year, from 2012 to 2015. Assume that the asset class is closed upon sale of the computers. If GOP's income is $50,000 before claiming CCA for 2015 and its tax rate is 30%, how much tax will the company have to pay?
Step by Step Answer:
Financial Management Theory And Practice
ISBN: 978-0176583057
3rd Canadian Edition
Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason