Examlex
-What is the structure indicated by the number 4 in Figure 12.1 and what is its functional significance?
Net Acquisition
When there is a purchase and sale of assets (within the same asset class) in the same year, CCA is calculated on the capital cost of the new asset minus the lesser of the original capital cost or the net proceeds from the asset disposed.
Half-year Rule
The half-year rule is a tax regulation that allows only half the year's depreciation expense on newly acquired assets to be deducted in the first year.
Asset Class
A group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same laws and regulations.
Sensitivity Analysis
Indicates exactly how much net present value will change in response to a given change in an input variable, other things held constant. Sensitivity analysis is sometimes called “what if” analysis because it answers this type of question.
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