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4. Calculate the tax consequences for the following assets sales. The assets all belong to a CCA class with a 20% rate and the
4. Calculate the tax consequences for the following assets sales. The assets all belong to a CCA class with a 20% rate and the company has a cost of capital of 10% and a marginal tax rate of 30%. Unless told otherwise assume there are still assets in the class after the sale. a. An asset with an original cost of $10,000 is sold for $6,000. The UCC balance before the sale is $12,000.(4) b. Answer part a assuming the UCC balance before the sale was $4,000.(5) c. An asset with an original cost of $6,000 is sold for $5,000. This is the last asset in the class and the UCC balance before the sale was 11,000. (6)
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Intermediate Accounting Volume 1
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
12th Canadian edition
119-49633-5, 1119496497, 1119496330, 978-1119496496
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