A Piece of Equipment Is in Class 7 with a Maximum

question 47

Multiple Choice

A piece of equipment is in Class 7 with a maximum CCA rate of 15%.The income tax rate is 40%.The tax savings from the CCA tax shield on this equipment for the first year was $1,500.What must have been the original capital cost of the equipment?

• A) $3,750.
• B) $25,000.
• C) $33,333.
• D) $50,000.

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Definitions:

Experimental Expectations

Anticipated results or outcomes of a scientific experiment based on hypotheses and prior knowledge.

Construct Validity

The degree to which a test measures what it claims to be measuring, reflecting the accuracy of an operationalization of a theoretical construct.

Regression Toward

A statistical phenomenon where extreme values in data are likely to be followed by, or associated with, less extreme values.

Pretest

An initial measurement or evaluation performed before an intervention or experiment to establish a baseline.