The Depreciation Method That Is Allowable Under the Income Tax

question 71

Multiple Choice

The depreciation method that is allowable under the Income Tax Act is referred to as

• A)Straight-line.
• B)Diminishing balance.
• C)Capital cost allowance.
• D)Units of depletion.
• E)All are allowed.

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Definitions:

Price Elasticity

The degree to which the demand for a good is responsive to changes in its price.

Tax Passed

Occurs when the burden of a tax is shifted from the entity legally responsible for it to another party, such as consumers.

Import Quota

A regulatory measure that sets a physical limit on the quantity of goods that can be imported into a country over a specified period of time.

Tariff

A tax imposed by a government on goods and services imported from other countries, used to control trade.