Which of the Following Statements Regarding the Relationship Between Amortization

question 34

Multiple Choice

Which of the following statements regarding the relationship between amortization and income taxes is true?

• A)All capital assets have the same amortization rate.
• B)The same amortization method must be used for income tax purposes and for the books.
• C)Canada Revenue Agency specifies the maximum amortization rate (CCA rate)a taxpayer may use.
• D)Most companies use straight-line amortization for income tax purposes.