Question
Westdale Burgers purchased a van for $18000 which is subject to a CCA rate of 20%. The company pays a corporate tax rate of 30%.
Westdale Burgers purchased a van for $18000 which is subject to a CCA rate of 20%. The company pays a corporate tax rate of 30%. The van is sold for $16000 at the end of the second year. What is the CCA Recapture amount due to the sale of the van? (hint - this would be the gain on the sale of the van)
Step by Step Solution
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Step: 1
To calculate the Capital Cost Allowance CCA recapture amount due to the sale of the van ...
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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
10th Edition
1119491630, 978-1119491637, 978-0470534793
