A Fixed Asset Costing $1,000,000 Is a Class 1 Asset

question 144

True/False

A fixed asset costing $1,000,000 is a Class 1 asset with a CCA rate of 4%. Using a 10% cost of capital and a 32% tax rate, the present value of the CCA tax shield is $87,273.

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Definitions:

Statistical Significance

a mathematical measure that indicates whether the results of a study are likely not due to chance at a specified level of probability.

Catastrophic Thinking

Catastrophic thinking is an irrational thought process whereby an individual believes that something is far worse than it actually is; it can pertain to obsessing over possible worst-case scenarios.

Personality-Disordered

Relates to individuals who have enduring patterns of behavior, thinking, and experiencing emotions that deviate from cultural expectations and cause distress or impairment.

Disease Risk

The probability of an individual developing a health disorder over a certain period.