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3. (10 marks) Create a 4-year CCA depreciation table using the following information: The Faculty of Arts IT Department has just bought 200 new
3. (10 marks) Create a 4-year CCA depreciation table using the following information: The Faculty of Arts IT Department has just bought 200 new computers at a total cost (including installation) of $200,000. The computers are considered Class 10 or 30 percent for CCA purposes. The firm has a marginal tax rate of 25% and capital gains are taxed at 50% of the gain. (25% x 50%) (4 marks) a. If the IT Department sells them for $50,000 after the four years, will there be a terminal loss, a CCA recapture, or a capital gain? If so, how much? (2 marks) b. If the IT Department sells them for $100,000 after the four years, will there be a terminal loss, a CCA recapture, or a capital gain? If so, how much? (2 marks) c. If the IT Department sells them for $250,000 after the four years, will there be a terminal loss, a CCA recapture, or a capital gain? If so, how much? (2 marks)
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