A Bakery Invests $30,000 in a Light Delivery Truck

question 81

Multiple Choice

A bakery invests $30,000 in a light delivery truck.The truck belongs to asset class 10 and has a capital cost allowance (CCA) rate of 30%.If the company sold it immediately after the end of year 2 for $22,000,what would be the present value of the lost CCA tax shields,given a tax rate of 40% and a cost of capital of 8%?

• A)$5,184
• B)$8,122
• C)$9,474
• D)$5,956
• E)$6,947

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Definitions:

Gender-role Awareness

The understanding or recognition of the socially constructed roles, behaviors, activities, and attributes that a given society considers appropriate for males and females.

Gender Identity

Describes a person's personal sense of their own gender, which may or may not align with the sex they were assigned at birth.

Development Of Adolescence

A critical period of growth and change that occurs after childhood and before adulthood, characterized by physical, psychological, and social developments.

Emotional Awareness

The ability to recognize and understand one's own emotions and those of others.