1. Eight months ago, Turner purchased 100 shares of Delta Frames stock at a price of $46.50 a share. Delta pays a quarterly dividend of $1.10 a share. Today, Turner sold all of his shares for $49 per share. What is Turner's total capital gain on this investment?
a. $155
b. $180
c. $250
d. $375
e. $200
2. ABC Products needs to replace its rawhide tanning and molding equipment. It can be used for five years and will have no salvage value. The equipment costs $930,000. The firm can lease it for $245,000 a year, or it can borrow the money to purchase the equipment at 8%. The firm's tax rate is 40%. The CCA rate is 20% (Class 8).What is the present value of the depreciation tax shield?
a. 293,130
b. $243,885
c. $277,177
d. $236,959
e. $286,000