Question
The cost of the machine is $13,459. The CCA rate is 30%. After 9 years, the machine is sold for $616 which is less than
The cost of the machine is $13,459. The CCA rate is 30%. After 9 years, the machine is sold for $616 which is less than the UCC of the asset class. If there are other assets in the asset class, the discount rate is 8% and the tax rate is 32%, what is the present value of the CCA tax shield of this machine? (Assume 150%-rule)
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Public Finance In Canada
Authors: Harvey Rosen, Beverly George Dahlby, Roger Smith, Jean-Francois Wen, Tracy Snoddon
3rd Canadian Edition
0070951659, 978-0070951655
