Miracle Works Inc. is located in Newfoundland. The company hires 3 eligible apprentices, paying each of them $30,000 in the current year. It also acquires $2,000,000 in qualified depreciable property. What are the tax consequences of these transactions for the current year?
A) The company will receive investment tax credits of $206,000. CCA for the current year will be based on the addition of $2,000,000 to the CCA class of the qualified property.
B) The company will receive investment tax credits of $6,000. CCA for the current year will be based on the addition of $2,000,000 to the CCA class of the qualified property.
C) The company will receive investment tax credits of $206,000. CCA for the current year will be based on the addition of $1,800,000 to the CCA class of the qualified property.
D) The company will receive investment tax credits of $209,000. CCA for the current year will be based on the addition of $2,000,000 to the CCA class of the qualified property.
Correct Answer:
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