The Receipt of Prizes and Awards Is Generally Taxable

question 9

True/False

The receipt of prizes and awards is generally taxable.

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Definitions:

Tax Rate

The percentage at which an individual or corporation is taxed by the government on the income or profits generated.

CCA Method

The CCA (Capital Cost Allowance) method is a tax deduction approach allowing Canadian businesses to claim depreciation on tangible property over its useful life as part of calculating taxable income.

CCA Tax Shield

A deduction that allows businesses to depreciate the cost of capital assets over time against their taxable income, reducing the tax payable.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, reflecting the proportion of additional income paid in taxes.