Under CCA, an Asset Which Originally Cost $100,000 Is Being

question 145

Multiple Choice

Under CCA, an asset which originally cost $100,000 is being depreciated using a 30% CCA rate.The depreciation expense in year 3 is___________ .

• A) $21,000
• B) $17,850
• C) $12,030
• D) $10,440

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Definitions:

Variable Costs

Costs that change in proportion to the level of output or activity.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good that consumers are willing to purchase at various prices.

Quantity Demanded

Quantity demanded is the total amount of a good or service that consumers are willing to purchase at a particular price over a specified period.

Consumer Tastes

Preferences and inclinations of consumers towards certain products, brands, or services, often influenced by cultural, social, and personal factors.