SNZ Inc. purchased machinery and equipment in the amount of $30,000 on January 1, 2019....
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Accounting
SNZ Inc. purchased machinery and equipment in the amount of $30,000 on January 1, 2019. SNZ plans to depreciate the asset straight-line over 20 years with no salvage value. For tax purposes these assets are to be depreciated using a capital cost allowance rate of 20%. The half-year rule applies. SNZ pays tax at a rate of 25%. What is the amount of the temporary difference between straight line depreciation and capital cost allowance on December 31, 2020?
Group of answer choices
a)$1,500
b)$1,800
c)$5,400
d)$3,600
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