If a leased asset were scrapped from a continuing CCA pool after four years, and its UCC were $10,000 and its salvage is zero, what would the present value of this asset's tax shelter be if the appropriate after-tax borrowing rate is 9%, the CCA rate is 20%, and the tax rate is 40%?
A)- $2,759
B)- $1,955
C)+ $10,000
D)+ $2,759

Question

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The Answer of If a leased asset were scrapped from a continuing CCA pool after four years, and its UCC were $10,000 and its salvage is zero, what would the present value of this asset's tax shelter be if the appropriate after-tax borrowing rate is 9%, the CCA rate is 20%, and the tax rate is 40%?
A)- $2,759
B)- $1,955
C)+ $10,000
D)+ $2,759

If a Leased Asset Were Scrapped from a Continuing CCA