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4 years ago, ACME purchased an asset for $300,000 (Capital cost allowance with 20% rate and 50% rule applies). Gross revenues (products) and operating expenses
4 years ago, ACME purchased an asset for $300,000 (Capital cost allowance with 20% rate and 50% rule applies). Gross revenues (products) and operating expenses for each year are presented in the table below. After 4 years, the asset was sold for the sum of $60,000. The tax rate is 32%.
year of possession of the asset 1 2 4 gross revenue 80000 125000 120000 100000 exploitation charges -20000 -40000 -30000 -50000Step by Step Solution
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