Q1 - CCA (30 minutes)

You purchase a piece of equipment for $440K at the beginning of the year (Jan 1, 2020).

Calculate the tax impact of disposing the equipment on Jan 1, 2024 for either $80,000 or $100,000. Assume a CCA rate of 30% and a tax rate of 20%.

The equipment is the only asset in the class.

Only use the half-year rule for the first year (not in year of disposal).