The Capital Cost Allowance (CCA)tax Shield of a Class 7

question 100

Multiple Choice

The capital cost allowance (CCA) tax shield of a Class 7 asset with a maximum 15% CCA rate was $12,000 for Year 2.The income tax rate was 40%.What was the total CCA deduction for the asset for Year 2?

• A) $12,000.
• B) $20,000.
• C) $30,000.
• D) $80,000.

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Definitions:

Norepinephrine

A neurotransmitter and hormone involved in the body’s fight-or-flight response, affecting attention and responding actions.

Depressed Mood

A state of persistent sadness, a key symptom of depression that can affect a person's thoughts, behavior, feelings, and sense of well-being.

Neurotransmitter

Chemical substances in the nervous system that transmit signals across a synapse from one neuron to another.

Antagonist

A substance that blocks or inhibits the effects of a neurotransmitter or hormone.