Better Products Ltd

question 72

Multiple Choice

Better Products Ltd.had annual net income of $20,000, CCA of $40,000, a 40 percent tax rate, a discount rate of 10 percent and annual cash sales of $200,000.The depreciable assets of Better Products belong in several different classes under the Income Tax Act, have a salvage value of zero at the end of six years, and were all bought new at the beginning of Year 1.What is the tax saving from CCA?

• A)$16,000
• B)$24,000
• C)$36,000
• D)$56,000
• E)$14,400

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Definitions:

School Cut-Off Strategy

A policy decision regarding the age at which a child is deemed eligible to start school, influencing the academic grouping by age.

Mandatory Schooling Requirements

Legal regulations that establish the minimum amount of education that children must receive, typically specifying both the starting age and the minimum number of years.

Cut-Off Date

A specified deadline or date by which something must be submitted or completed.

Cognitive Abilities

Mental skills that include the capacity to learn, remember, solve problems, and make decisions.