Question
A private company just acquired a new software to do in-house accounting. The company paid $10,000 for the software. Annual upgrades over next 3 years
A private company just acquired a new software to do in-house accounting. The company paid $10,000 for the software. Annual upgrades over next 3 years will cost company $1,50 per year. Software belongs to Class 10 of the Canadian CCA system with the CCA rate of 30%. Calculate the PW of the tax savings in year 2 due to the CCA system under annual MARR of 5% and corporate tax rate of 12.5%.
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Financial Accounting Tools For Business Decision-Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
2nd Canadian Edition
0470833378, 978-0470833377
