Each of the Five Sales Representatives at CapiCal Enterprises Were

question 4

Multiple Choice

Each of the five sales representatives at CapiCal Enterprises were provided with automobiles valued at $25,000 each. The purchase was made 26 months ago, two months before the end of the fiscal year. The cars have an expected lifetime of seven years each. What is the maximum CCA [capital cost allowance] the Company can claim on its annual tax return at the end of 26 months?

• A) $37,500
• B) $26,250
• C) $22,313
• D) $18,375
• E) $17,857

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Definitions:

Psychological Distress

A state of emotional suffering characterized by symptoms of depression and anxiety, often due to adverse life circumstances or psychological disorders.

Flashbacks

Sudden, intense, and usually disturbing re-experiences of past memories or events, often associated with psychological conditions such as PTSD.

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A disease in which a waxy substance called plaque builds up inside the coronary arteries, which supply oxygen-rich blood to the heart muscle, leading to heart attacks.

High Blood Pressure

A chronic medical condition where the force of the blood against artery walls is too high, potentially leading to health problems.