On January 1, 2020, Wings Inc

question 53

Multiple Choice

On January 1, 2020, Wings Inc. purchased a machine for $ 270,000, which will be depreciated $ 27,000 annually for book purposes. For income tax reporting, the asset is a Class 8 asset with a CCA rate of 20%, subject to the half year rule for 2020. Assume a present and future enacted income tax rate of 30%. What amount should be added to Wings' deferred tax liability for the difference between depreciation and CCA at December 31, 2020?

• A) $ 16,200
• B) $ 9,000
• C) $ 8,100
• D) $ 0

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