Multiple Choice
A piece of equipment is in Class 7 with a maximum CCA rate of 15%.The income tax rate is 40%.The tax savings from the CCA tax shield on this equipment for the first year was $1,500.What must have been the original capital cost of the equipment?
A) $3,750.
B) $25,000.
C) $33,333.
D) $50,000.
Correct Answer:
Verified
Correct Answer:
Verified
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