Which of the Following Cases Is Not Eligible for Capital

question 8

Multiple Choice

Which of the following cases is not eligible for capital cost allowance in the current year?

• A) A new engine is installed in a semi-trailer that is used to haul produce to the United States.
• B) An employee owns and uses an automobile in the course of her employment duties during the month of December. Her pay for December is not received until January of the following year.
• C) A piece of equipment was purchased during the year on a 5 year financing term.
• D) A building under construction is scheduled for completion in eighteen months. The building will be used as a production facility.

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Definitions:

Written Contracts

Legally binding agreements captured in writing that specify the duties, rights, and obligations of each party.

Date Due

The specified day by which an obligation must be fulfilled or a payment must be made.

Aging of Accounts

The process of categorizing accounts receivable by the length of time they have been outstanding.

Delinquent

An individual or entity that fails to fulfill an obligation, particularly in terms of financial debt payments, within the stipulated time.