Payson Company Bought $40,000 Worth of Office Equipment at the Beginning

question 172

Multiple Choice

Payson Company bought $40,000 worth of office equipment at the beginning of Year 1. This equipment has a useful life of eight years and a salvage value at the end of its useful life of $4,000. This equipment is in Class 7 with capital cost allowance (CCA) rate of 15%. The income tax rate is 40%.
- What is the maximum amount of CCA that the company will be able to deduct for tax purposes for Year 2?

• A) $4,995.
• B) $5,100.
• C) $5,550.
• D) $6,000.

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A measure of the number of deaths in a particular population, scaled per unit of time, typically expressed per 1,000 individuals per year.

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