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

---

Definitions:

Coal Burning

The combustion of coal as a method to generate electricity or heat, contributing to air pollution, including the release of carbon dioxide and other harmful emissions.

Global Warming

The long-term rise in Earth’s average temperature, primarily due to carbon dioxide emissions from burning fossil fuels.

Ambient Temperature

The temperature of the air surrounding a particular environment or object.