Fly'n Fish Inc. purchases one small plane in its first year of business for $160,000. In year

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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?

Related Book For answer-question

Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

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Posted Date: Sep 22, 2023 05:49 AM

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Fly'n Fish Inc. purchases one small plane in its first year of business for $160,000. In year

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To calculate the Capital Cost Allowance CCA tax shield you can follow these steps a CCA Tax Shield i... View the full answer

Income Tax Fundamentals 2013

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