Consider an Asset That Costs $200,000 and Has a CCA

question 149

Multiple Choice

Consider an asset that costs $200,000 and has a CCA rate of 20% for tax purposes. The asset wasused for 5 years at which time it was sold for $150,000. If the relevant tax rate is 40%, what is theafter-tax cash flow from the sale of this asset? Assume the asset pool is closed upon sale of the asset.

• A) $171,876
• B) $144,167
• C) $162,167
• D) $119,491

---

Definitions:

Alcohol Use

The consumption of beverages containing ethanol, which can range from moderate drinking to alcohol abuse or dependence.

Withdrawal Symptoms

Physical or mental effects that occur after stopping or reducing intake of a substance that was used regularly.

Coarse Tremor

A type of involuntary, rhythmic muscle contraction characterized by large, fast movements that are visible and can affect any part of the body.

Alcohol Withdrawal

Symptoms that occur when a person who is accustomed to regular alcohol intake suddenly stops or significantly reduces their alcohol consumption.