Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Kinnetics Inc. purchased Class 8 equipment ( 2 0 % CCA Rate ) for $ 1 5 , 0 0 0 on July 2 3

Kinnetics Inc. purchased Class 8 equipment (20% CCA Rate) for $15,000 on July 23,2014. Opening UCC for Class 8 in 2015 was $12,000. Kinnetics is subject to 40% taxation. During 2015 Kinnetics sold Class 8 equipment with UCC of $9,000 and purchased another Class 8 equipment for $4,000.
Which of the below are correct?
CCA of $1,400 in 2015
Tax benefit of $560 in 2015
Ending UCC of $5,600 in 2015
All of the above are correct
None of the above are correct

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Financial Management

Authors: Brigham, Daves

10th Edition

978-1439051764, 1111783659, 9780324594690, 1439051763, 9781111783655, 324594690, 978-1111021573

More Books

Students also viewed these Finance questions

Question

=+ c. How would the change you describe in part

Answered: 1 week ago