A Firm Is Considering Investing in a New Machine That

question 28

Multiple Choice

A firm is considering investing in a new machine that will cost $600,000 and will be be under asset class 43 with a CCA rate of 30%.If the firm's marginal tax rate is 39%,what is the CCA tax shield in the first year?

• A)$120,000
• B)$35,100
• C)$300,000
• D)$234,000
• E)$90,000

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