Last year your construction company had operating revenues of $$1,240,000,$

operating costs of $$520,000$ and a CCA of $$98,000$ based upon existing assets. The

beginning of that same year the company bought essential new equipment for

$$130,000.$ This equipment has a CCA rate of $30\%.$ The company has borrowed

money and is paying $$18,000$ per year in interest. Interest paid on borrowed money is

tax deductible, so it reduces the taxable income. You also managed somehow to

deduct the first$-$class flight tickets for all the vice$-$presidents and their spouses on a

business trip to Cancun, Mexico, which cost a total of $$50,000.$ The tax rate is

$37\mathrm{.}62\%.$

Total CCA is close to:

Select one:

a$.$ $$98,800$

b$.$ $$137,000$

c$.$ $$117,500$

d$.$ $$135,500$

Clear my choice