The Depreciation Method Currently Allowed Under Canadian Tax Law Governing

question 265

Multiple Choice

The depreciation method currently allowed under Canadian tax law governing the write-off of property under various classifications is called _____ depreciation.

• A) FIFO
• B) CCA
• C) straight-line
• D) sum-of-years digits
• E) curvilinear

---

Definitions:

Idle Capacity

The unused portion of a company's production or service capacity, where resources are available but not being fully utilized.

Potential Profit

The projected or anticipated profit from a business activity or investment, considering current or expected conditions.

Transfer Price

Transfer price refers to the price at which goods and services are sold between departments or subsidiaries within the same company.

Selling Division

The division or section of a company responsible for sales activities and interfacing with customers to sell products or services.