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Question - Suppose your firm is considering buying a van costing $85,000. What is the undepreciated capital cost (UCC) for the van after Six years. Note: the van falls in class 10 with a 30 percent CCA rate. Use the tabular approach when calculating the UCC after Six years.
a) Calculate the UCC at the end of year 6.
b) If the Van is sold at $4500 at the end of 6 years, what is the tax implication? What name is assigned to this tax implication?
c) If the Van is sold at $55,000 at the end of 6 years, what is the tax implication? What name is assigned to this tax implication?
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show work and forumulas needed to calculate npvnbspnbspcalculating npvnbspnbspfor the cash flows in the previous
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