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Operating cash flows. In January 2018, Talias Tutus bought some equipment for a data network for $40000 that will be depreciated in asset class 46,

Operating cash flows. In January 2018, Talias Tutus bought some equipment for a data network for $40000 that will be depreciated in asset class 46, which has a CCA rate of 30%. This firms tax bracket is 35%.

  1. Find the CCA amount each year for the next 3 years.
  2. If the equipment is sold after 3 years for $20,000 what will be the after tax proceeds on the sale if the firms tax bracket is 35%? Assume that Talias Tutus has other assets in Class 46.
  3. Now rework you're calculations assuming that Talias Tutus has no other assets in class 46 and the asset class will be terminated upon the sale of the equipment in year 3.

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