For the property with the capital cost of $71,220, and using the applicable income tax rate of 29%, calculate the Disposal Tax Effect in the following three cases, with the salvage values at the end of the five years of the project being: 1.95% 2.100% 3.115% of the original cost base (i.e., capital cost). The CCA rate is 20%. Apply the "50% rule" (i.e., "half-a-year rule"). If necessary, use the capital gains tax rate of 14.5%.

For the property with the capital cost of $71,220, and using the applicable income tax rate of 29%, calculate the Disposal Tax Effect in the following three cases, with the salvage values at the end of the five years of the project being: 1.95% 2.100% 3.115% of the original cost base (i.e., capital cost). The CCA rate is 20%. Apply the "50% rule" (i.e., "half-a-year rule"). If necessary, use the capital gains tax rate of 14.5%.

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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