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Valdez Corporation commenced operations on January 1, 2019. Relevant financial data during its first year of operation are given as follows: Sales revenues, $1540000. Labour,
Valdez Corporation commenced operations on January 1, 2019. Relevant financial data during its first year of operation are given as follows: Sales revenues, $1540000. Labour, material, and overhead costs, $620000. The company purchased a warehouse worth $500,000 in February. To finance this warehouse, the company issued $540000 of long- term bonds on January 1, which carry an interest rate of 10% with interests paid once a year. The first interest payment occurred on December 31 of 2019. The bond interests paid to buyers of the bonds by the company are tax-deductible. For tax depreciation purposes, the purchase cost of the warehouse is divided into $320000 for the building and the remaining amount for the land. The building is a CCA Class 1 asset with a CCA rate of 4%. On January 5, the company purchased $220000 of equipment, which falls into CCA Class 43 with a CCA rate of 30%. The corporation's tax rate is 40%. Use integers for your answers. (a)The capital cost allowance amount for the building purchased (CCA)building in the year = (b)The capital cost allowance amount for the equipment purchased (CCA)Equipment in the year = (c)The total interest amount paid by the company to all bond holders in the year = (d)The total allowed deduction amount for income tax purposes in the year = (e) The total taxable income is = (1)The total income tax payable in the year = (9)The net income generated in the year =
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