The Maximum Capital Cost Allowance (CCA) That May Be Deducted

question 57

Multiple Choice

The maximum capital cost allowance (CCA) that may be deducted for new assets is

• A) the same as the depreciation calculated for the year.
• B) restricted by the residual value.
• C) restricted to 50% of the normal amount.
• D) is the annual amount prorated based on when the asset was purchased during the year.

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Definitions:

PM Inspections

Preventative Maintenance Inspections; routine checks to ensure that equipment is operating efficiently and to prevent potential failures.

Handling Precautions

Guidelines or measures taken to ensure safe and effective use, transportation, or storage of materials, products, or equipment.

Corrosive

Substances that cause destruction or damage to materials, metals, or tissue through a chemical reaction.

Right-To-Know

Refers to laws and regulations that ensure individuals have access to information about chemicals and hazards they may be exposed to in the workplace.