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The company AAA is selling its classic car in mint condition for $225,000 at a public auction. The car was originally bought for S35,000 and

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The company AAA is selling its classic car in mint condition for $225,000 at a public auction. The car was originally bought for S35,000 and it has been always kept in the inventory for the last 40 years. It is depreciated on the books from its original purchase price at a CCA rate of 30%. The company's marginal tax rate is 27%. Is the company eligible to receive tax credit (how much?) or does it have tax liability (how much)? Why? What is the net salvage value of the car? (Hint: You have to consider the capital gains tax as well) (25 pts) The company AAA is selling its classic car in mint condition for $225,000 at a public auction. The car was originally bought for S35,000 and it has been always kept in the inventory for the last 40 years. It is depreciated on the books from its original purchase price at a CCA rate of 30%. The company's marginal tax rate is 27%. Is the company eligible to receive tax credit (how much?) or does it have tax liability (how much)? Why? What is the net salvage value of the car? (Hint: You have to consider the capital gains tax as well) (25 pts)

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