Question

a passenger vehicle purchased for a business costing $28,000 plus gst/hst at 13%, would be added to class... question 6select one: a. 10.1 b. 8 c. 53 d. 10

Answer 1

The correct tax class for a passenger vehicle purchased for a business for $28,000 before tax is Class 10, as it is under the $30,000 threshold.

Step-by-step explanation:

The question pertains to the classification of capital cost allowances (CCA) for tax purposes in Canada. When a passenger vehicle purchased for a business is bought for $28,000 plus GST/HST at 13%, it should be added to a specific CCA class for tax deduction purposes. The correct class for passenger vehicles that cost more than $30,000 before tax is Class 10.1. This class limits the amount that can be claimed for capital cost allowance. For vehicles that cost less than $30,000 before tax, Class 10 would be the appropriate class. Hence, the correct answer in this case, since the purchase price of the vehicle is $28,000 before tax, is Class 10.