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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