Determine the tax implications, Basic Statistics

Your firm purchased a line of computer equipment for $1.5M four years ago. It is assigned a CCA rate of 20% and the firm has a tax rate of 35%. At the end of this year (year 4 for the machine) you decide to sell the computer equipment and as a result you will terminate the asset pool. Calculate the tax implications under the following scenarios and classify each as a terminal loss, CCA recapture, or neither.

a. You sell the equipment for $691,200.

b. You sell the equipment for $2,000,000. 

c. You sell the equipment $1,000,000. 

d. You sell the equipment for $500,000.

e. The equipment is worthless. 

 

 

Posted Date: 3/1/2013 12:07:02 AM | Location : United States







Related Discussions:- Determine the tax implications, Assignment Help, Ask Question on Determine the tax implications, Get Answer, Expert's Help, Determine the tax implications Discussions

Write discussion on Determine the tax implications
Your posts are moderated
Related Questions
2. From the following cost, production and sales data of Decors Motor Ltd., prepare comparative income statement for three years under (i) absorption costing method, and (ii) margi

why should cofficient of variation be used to compare the dispersion?

Examine the distributions of weight and height. Are there any outliers? If so deal with them appropriately. Create a new variable that divides weight into groups. Produce a tabl

Explain definition of bad debt reserve and provision in terms of accounts receivable likely to be uncollected. Bad debt reserve provision Bad debt reserve provision is a amount

Nortel is considering the purchase of a new call routing system. The system will cost $50M to purchase, an additional $7M to install, and will last for 30 years. The CCA rate assoc

Design an activity based cost system requires that: a) the job bid process redesigned b) resource costs be linked to the activities performed c)the cost of activities be linked to

What is Art collection A personal perform of art or number of products of unique graphics such as artwork, statues, craftwork or other elements generally determined as a perform

explain the graphical method of measure of central tendency.

To illustrate the importance of model selection. We will use only the first four observations to estimate the function f such that ini t. h = f(h. d) for two different models.

What are the consequences of non-compliance to each accounting concepts?