Question
The capital cost allowance (CCA) tax shield of a Class 7 asset with a maximum 15% CCA rate was $12,000 for Year 2. The income
The capital cost allowance (CCA) tax shield of a Class 7 asset with a maximum 15% CCA rate was $12,000 for Year 2. The income tax rate was 40%. What was the total CCA deduction for the asset for Year 2?
Select one:
a. $12,000.
b. $80,000.
c. $30,000.
d. $20,000.
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Financial Accounting
Authors: Walter B. Meigs, A. N. Mosich, Robert F. Meigs
2nd Edition
0070412901, 978-0070412903
