You Are Considering Adding a Microbrewery onto One of Your

question 30

Multiple Choice

You are considering adding a microbrewery onto one of your firm's existing restaurants.This will entail an investment of $40,000 in new equipment.The new equipment falls under asset class 43 and has a capital cost allowance (CCA) rate of 30%.If your firm's marginal corporate tax rate is 35%,then what is the value of the microbrewery's CCA tax shield in the first year of operation?

• A)$2100
• B)$14,000
• C)$5200
• D)$26,000
• E)$6000

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Definitions:

Forces Resisting Change

Refers to the obstacles or oppositions that hinder the implementation of change within an organization, often stemming from individual, group, or systemic resistance.

Direct Costs

Expenses that can be directly attributed to the production of specific goods or services, such as labor and materials.

Saving Face

Efforts made by individuals or groups to avoid embarrassment or maintain dignity and respect in the eyes of others.

Appreciative Inquiry

An approach focusing on identifying and building upon an organization's strengths and successes rather than problems.