Question
Fly'n Fish Inc. purchases one small plane in its first year of business for $160,000. In year 3 it purchases another plane for $180,000. If
Fly'n Fish Inc. purchases one small plane in its first year of business for $160,000. In year 3 it purchases another plane for $180,000. If the CA rate for aircraft is 25% and the corporate tax rate is 30%.
(a) What is the value of CCA tax shield in year 3?
- (b) Suppose that Fly'n Fish decided to sell its first aircraft for $70,000 in year 2. What would be the CCA in year 2?
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To calculate the Capital Cost Allowance CCA tax shield you can follow these steps a CCA Tax Shield i...
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
