In August 2002, a firm purchased a bulldozer $40,000. It was subsequently sold in January 2005 for $28,000. Assume that the firm has a December 31 year end, the firm is in a 40% tax bracket, the CCA rate for the equipment is 30% and that there were no other assets in the class. CCA was claimed for 5 years.

One of three questions on this topic.

What was the tax basis book value at the end of 2004?

A 23,800

B 7,140

C 16,660

D zero