Question
A business purchases a capital asset for $289,000. The asset will be placed in a 20% CCA asset class and qualify for the Accelerated Investment
A business purchases a capital asset for $289,000. The asset will be placed in a 20% CCA asset class and qualify for the Accelerated Investment Incentive. The business has a 35% marginal income tax rate. What is the CCA tax shield (e.g. reduction in taxes) for the third year as a result of owning this asset?
a. $11,006
b. $11,455
c. $11,329
d. $11,218
e. $10,924
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Proli Footwear Inc An Audit And Fraud Simulation For Team-Based Student Learning
Authors: Patricia Poli, Richard Proctor
2nd Edition
0615455492, 978-0615455495
