You Are Considering Adding a Microbrewery onto One of Your

Multiple Choice

You are considering adding a microbrewery onto one of your firm's existing restaurants.This will entail an investment of $40,000 in new equipment.The new equipment falls under asset class 43 and has a capital cost allowance (CCA) rate of 30%.If your firm's marginal corporate tax rate is 35%,then what is the value of the microbrewery's CCA tax shield in the first year of operation?

A) $2100
B) $14,000
C) $5200
D) $26,000
E) $6000