A firm purchases a Class 8 equipment for $1,000,000 (CCA Rate 20%) for a 10 year project. What will be the CCA tax shield in year 4? The tax rate is 35%. The half-year rule is in effect and the asset class will remain open.

A)

$40,320

B)

$201,600

C)

$35,000

D)

$50,400

E)

$144,000

can you show me the detailed step of this question?

the answer is A