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Kinnetics inc purchased a piece of land for 500000 and equipment z for 25000 on january 2, 2015, kinnetics is subject to a 25% tax rate and all of kinnetics' depreciable assets are class 10 with a cca of 30%.
kinnetics inc. sold the piece of land in 2016 for 650000
Which of the following is true?
a. cca on land is 75000 in 2015
b. tax racapture on land is 18750 in 2016
c. capital gains tax on land is 18750 in 2016
d. all of the above
e. only a and c
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Elucidate how closely do real world conditions match the charateristics listed in the model. Do they compete using price. Is the good in question standardized.
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