Under Capital Cost Allowance, Which One of the Following Is

question 39

Multiple Choice

Under capital cost allowance, which one of the following is not considered in determining depreciation for tax purposes?

• A)Cost of the asset
• B)Class of the asset
• C)Half-year convention
• D)Residual value

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Definitions:

Capital Expenditures

Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment to improve its long-term operations.

Compliance

Adherence to laws, regulations, guidelines, and specifications relevant to an organization's business activities.

Debt Covenant

A provision often included in loan agreements that requires the borrower to adhere to certain conditions or restricts specific financial activities.