Which of the Following Correctly Describes the Impact of CCA

question 5

Multiple Choice

Which of the following correctly describes the impact of CCA being an accelerated tax deduction?

• A) There is no impact on the timing of the deductions
• B) The deduction is received evenly throughout the asset's life
• C) More of the deduction is received earlier in the asset's life
• D) More of the deduction is received later in the asset's life

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Definitions:

Productive Economy

Refers to an economy that efficiently utilizes its resources to produce goods and services that meet the needs and wants of its population.

Commodity

Commodity denotes basic goods used in commerce that are interchangeable with other goods of the same type.

Allocation

The process of distributing resources, goods, or services in a particular way or to particular recipients.

Scarce Resources

Resources that are limited in supply and cannot fulfill all the uses and demands placed on them.