Tribune company bought 45,000 worth of office equipment at the beginning of year 1. This...
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Accounting
Tribune company bought 45,000 worth of office equipment at the beginning of year 1. This equipment has a useful life of 6 year and a salvage value at the end of this useful life of 5000.
This equipment is a class 7 with capital cost allowance (CCA) rate 15%. The income tax rate is 25% and the WACC is 8%
What is the present value of the maximum CCA tax shield year 2? Show calculation
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