If company A has a tax rate of 30%, and company B has a tax rate of 40%, then the tax shield fromCCA would benefit company B more than company A

Name: If company A has a tax rate of 30%, and company B has a tax rate of 40%, then the tax shield fromCCA would benefit company B more than company A
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Since CCA reduces taxable income, a higher tax rate would result in a larger tax shield. Therefore, company B with a higher tax rate would benefit more from the CCA tax shield.

If Company a Has a Tax Rate of 30%, and Company