Which of the Following Cases Is Not Eligible for Capital

question 2

Multiple Choice

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

• A)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.
• B)A new engine is installed in a semi-trailer that is used to haul produce to the United States.
• 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:

Financing Activities

Involve transactions between a company and its investors and creditors, impacting the firm's capital structure.

Cash Dividend

A distribution of a company's earnings to its shareholders, typically in the form of cash.

Comparative Balance Sheet

A financial statement that presents the financial position of a company at two or more different points in time.

Operating Activities

Day-to-day actions that are involved in running a business, such as selling products, managing costs, and paying employees.