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<br/> -The CEO also needs help understanding the tax consequences

of the disposal for an old piece of equipment. Prepare a CCA schedule for tax depreciation of a set of equipment purchased three years ago on January 1, 2015 for $270,000 (assume Class 46 with CCA rate of 30% and half-year rule applying). Calculate the tax consequence if all the equipment were to be sold at the beginning of this year (i.e., end of 2017) for either $90,000 or $120,000. The equipment is the only asset in the class. Utilize the average tax rate that Canada Hardware Inc. had in the last five years in your analysis of the tax impact.

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