Any Difference That Arises from the Use of Capital Cost

question 2

Multiple Choice

Any difference that arises from the use of capital cost allowance CCA) for tax purposes and amortization methods for accounting purposes is referred to as an) :

• A)undepreciated capital cost.
• B)temporary difference.
• C)future income tax liability.
• D)future tax asset.

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Definitions:

Volcanic Unit

A segment of the Earth's crust formed by volcanic activity, characterized by a distinct composition and age.

Eruption

The discharge of lava, ash, and gases from a volcano or other opening in the Earth's surface.

Hot Spot

A region in the Earth's mantle from which hot plumes of magma rise to the surface, often forming volcanic islands.

Subsidence

The gradual settling or sinking of the Earth's surface with little or no horizontal motion, often due to natural underground processes.