A Firm Has Just Purchased a Vehicle for $100 000

question 49

Multiple Choice

A firm has just purchased a vehicle for $100 000. The CCA rate for this vehicle is 40%. The firm's corporate tax rate is 50%. What would be the firm's tax savings due to the CCA by the end of the first year?

• A)$5 000
• B)$7 500
• C)$10 000
• D)$15 000
• E)$20 000

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Definitions:

Lacks Conscientiousness

Refers to a person's tendency to be less careful, responsible, and diligent in their duties and responsibilities.

Multi-task

The ability to handle more than one task simultaneously, often requiring quick switching between tasks.

Careless and Irresponsible

Exhibiting a lack of concern or attention to duties and obligations, often resulting in harm or risk.

Conscientiousness

A personality trait characterized by diligence, carefulness, and the desire to do a task well, often associated with high levels of responsibility.