AMF Products Ltd. had annual net income of $20,000, CCA of $35,000, a 40 percent tax rate, a discount rate of 10 percent, and annual cash sales of $200,000. The depreciable assets of AMF Products belong in several different classes under the Income Tax Act, have a salvage value of zero at the end of six years, and were all bought new at the beginning of Year 1. What is the tax saving from CCA?

Answer rating: 100% (QA)

To calculate the tax saving from Capital Cost Allowance CCA we need to determine the C... View the full answer