Suppose That a Canadian Company Bought a Car for $20

Suppose that a Canadian company bought a car for $20 000. The CCA rate for the car is 20% and the corporate tax rate is 40%. How much money does the company save in the first year as a result of the CCA allowance?

A) $2 400
B) $1 600
C) $1 200
D) $800
E) It does not save at all since it still has to pay taxes.