Which Statement Is Correct

question 53

Multiple Choice

Which statement is correct?

• A)Undepreciated capital cost (UCC)is the net carrying amount of an asset or asset class for tax purposes.
• B)A deductible temporary difference is a temporary difference that results in future taxable income being more than accounting income.
• C)A terminal loss is the tax loss arising from the sale of an asset for proceeds above its undepreciated capital cost.
• D)Recaptured depreciation is the taxable income recorded for the reversal of previous capital cost allowance when the sale proceeds of an asset are less than its undepreciated capital cost.

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Definitions:

Distributaries

Branches of a river that flow away from its main course, typically seen in delta regions where the river splits into several smaller channels near its mouth.

Alluvial Fans

Cone-shaped deposits of sediment crossed and built up by streams, typically found at the base of mountain ranges where a river exits a steep valley.

Upper Mississippi

Refers to the portion of the Mississippi River that flows from its headwaters to the confluence with the Missouri River.

Hard Rocks

Earth materials, such as granite and basalt, that are solid, tough, and resistant to weathering and erosion.