Assume that a company that incorporated (just started business) on February 25, 2017, and purchased a truck for $35,000 on April 14, 2017. The company purchased two small excavators for $20,000 each on June 1, 2019. The following year, on March 20, 2020, the company traded the truck and, with an additional $12,000 cash, purchased a bulldozer. Finally, consider the tax consequences if on November 1, 2020 sold one excavator for $10,000. All the above assets fall into CRA Class 10, which has a 30% CCA rate. How much CCA can the company claim in 2019? Question 20 options: $11,355.50 $12,500.50 $14,249.00 $12,247.50 Question 22 If expected dividend from a stock is $3.00, market price of the stock today is $30.00 and expected price of the stock at the end of Year 1 is $33.00. What is the stock’s total expected return for the coming year? Question 22 options: 20% 6% 10% 16%

Assume that a company that incorporated (just started business) on February 25, 2017, and purchased a truck for $35,000 on April 14, 2017. The company purchased two small excavators for $20,000 each on June 1, 2019. The following year, on March 20, 2020, the company traded the truck and, with an additional $12,000 cash, purchased a bulldozer. Finally, consider the tax consequences if on November 1, 2020 sold one excavator for $10,000. All the above assets fall into CRA Class 10, which has a 30% CCA rate. How much CCA can the company claim in 2019? Question 20 options: $11,355.50 $12,500.50 $14,249.00 $12,247.50 Question 22 If expected dividend from a stock is $3.00, market price of the stock today is $30.00 and expected price of the stock at the end of Year 1 is $33.00. What is the stock’s total expected return for the coming year? Question 22 options: 20% 6% 10% 16%

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter7: Losses—deductions And Limitations

Section: Chapter Questions

Problem 70IIP

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