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Karp exploration recently spent $11 million to purchase some new exploration equipment. This equipment has a CCA rate of 30% and Karp's marginal corporate tax
Karp exploration recently spent $11 million to purchase some new exploration equipment. This equipment has a CCA rate of 30% and Karp's marginal corporate tax rate is 31%. What is the CCA tax shield for year 1? Assume the half-year rule applies.
Question options:
$427,456 | |
$323,856 | |
$578,202 | |
$511,500 | |
$532,605 |
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