The cost of the machine is $12,801. The CCA rate is 27%. After 9 years, the...
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The cost of the machine is $12,801. The CCA rate is 27%. After 9 years, the machine is sold for $508 which is less than the UCC of the asset class. If there are other assets in the asset class, the discount rate is 9% and the tax rate is 40%, what is the present value of the CCA tax shield of this machine? (Assume 150%-rule) The cost of the machine is $12,801. The CCA rate is 27%. After 9 years, the machine is sold for $508 which is less than the UCC of the asset class. If there are other assets in the asset class, the discount rate is 9% and the tax rate is 40%, what is the present value of the CCA tax shield of this machine? (Assume 150%-rule)
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SOLUTION To calculate the present value of the CCA tax shield we need to determine the CCA tax shiel... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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