When analyzing a real-world project, it is important to ...
Steps to calculate yearly CCA deductions and CCA tax shields: 1. Determine the asset class and relevant CCA rate. 2. Determine the first CCA deduction (assumed to be at the end of the first year). Revenue Canada imposes the “half-year rule” for the first CCA deduction. This results in only half the normal capital cost allowance. ................
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