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A firm has recently purchased Class 10 equipment for $100,000 with a CCA rate of 30%. What is the amount of depreciation that the firm can claim as a tax-deductible expense in the second year? Use the Accelerated investment rate Select one: O a. $55,000 O b. $25,500 O . $16,500 O d. $59,500

A firm has recently purchased Class 10 equipment for $100,000 with a CCA rate of 30%. What is the amount of depreciation that the firm can claim as a tax-deductible expense in the second year? Use the Accelerated investment rate Select one: O a. $55,000 O b. $25,500 O . $16,500 O d. $59,500

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A firm has recently purchased Class 10 equipment for $100,000 with a CCA rate of 30%. What is the amount of depreciation that the firm can claim as a tax-deductible expense in the second year? Use the Accelerated investment rate Select one: O a. $55,000 O b. $25,500 C. $16,500 O d. $59,500 A firm has recently purchased Class 10 equipment for $100,000 with a CCA rate of 30%. What undepreciated capital cost in the beginning of second year? Use the Accelerated investment rate Select one: a. $55,000 O b. $59,500 $16,500 O d. $25,500 You have just received a dividend of $100 from a large Canadian corporation. Your federal marginal tax rate is 26%. The gross up is 38% and the dividend tax credit is 0.150198. Calculate the income taxes payable Select one: O a. $13.00 O b. $35.88 O c. $20.73 O d. $15.15
Transcribed Image Text:A firm has recently purchased Class 10 equipment for $100,000 with a CCA rate of 30%. What is the amount of depreciation that the firm can claim as a tax-deductible expense in the second year? Use the Accelerated investment rate Select one: O a. $55,000 O b. $25,500 C. $16,500 O d. $59,500 A firm has recently purchased Class 10 equipment for $100,000 with a CCA rate of 30%. What undepreciated capital cost in the beginning of second year? Use the Accelerated investment rate Select one: a. $55,000 O b. $59,500 $16,500 O d. $25,500 You have just received a dividend of $100 from a large Canadian corporation. Your federal marginal tax rate is 26%. The gross up is 38% and the dividend tax credit is 0.150198. Calculate the income taxes payable Select one: O a. $13.00 O b. $35.88 O c. $20.73 O d. $15.15
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