Question
how do i answer question 6 The CEO also needs help understanding the tax consequences of the disposal of a freighting truck. Prepare a CCA
how do i answer question 6 The CEO also needs help understanding the tax consequences of the disposal of a freighting truck. Prepare a CCA schedule for tax depreciation of a freighting truck purchased three years ago on January 1, 2015 for $350,000 (assume Class 16 with CCA rate of 40% and half-year rule applying). Calculate the tax consequence if the truck were to be sold at the beginning of this year (i.e., end of 2017) for either $90,000 or $120,000. The truck is the only asset in the class. Utilize the average tax rate that America Coffee House had in the last five years in your analysis of the tax impact.
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