The CEO needs help understanding the tax consequences of the disposal of some manufacturing equipment. Prepare a CCA schedule for tax depreciation of manufacturing equipment purchased 3 years ago on Jan 1, 2015 for 340k(assume class 46 with CCA rate of 30% and half-year rule applying). Calculate the tax consequence if all the equipment were to be sold at the beginning of this year (end of 2017) for either $120k or $160k. The equipment is the only asset in the class. Utilize the average tax rate that pear computer horizons had in the last 5 years in your analysis of the tax impact.
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