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4. A company’s second year operations can be summarized as follows: Revenues: $110 000 Expenses (except CCA): $65 000 Its capital asset purchases in the first year totalled $100 000, with none in the second year. With a CCA rate of 20 percent and a tax rate of 55 percent, how much income tax did it pay? Q4 ANSWER: Second year CCA (5 points): …………………………………………………………………………. Net income (5 points): …………………………………………………………………………. Taxes paid (5 points): ………………………………………………………………………….
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