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Larry's bridal company has purchased a manufacturing equipment costing $75,300. The equipment has a three-year useful life with a salvage value of $30,500. CCA will
Larry's bridal company has purchased a manufacturing equipment costing $75,300. The equipment has a three-year useful life with a salvage value of $30,500. CCA will be taken using a rate of 30%. The tax rate is 26.00%, while the discount rate is 7.50%. Assuming the company takes all available CCA every year, what will be the amount of taxes Larry has saved due to CCA in year 2?
A) 4992
B)5117
C)5242
D5367
E)5492
F)5276
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