Which of the Following Assets Is Not Eligible for Bonus

question 52

Multiple Choice

Which of the following assets is not eligible for bonus depreciation?

• A)Used office machinery
• B)Qualified improvement property
• C)A new delivery truck
• D)Used office furniture
• E)None of the choices are correct.

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Definitions:

Capital Cost Allowance

A tax deduction in Canada for the depreciation of tangible property.

Deferred Tax

A tax liability or asset that arises due to temporary differences between the book value and tax value of assets and liabilities.

Deferred Tax Asset

A tax benefit that arises from temporary differences between the book and the taxable income, often due to allowances and deductions recognized at different times.

Consulting Fees

Charges imposed by consultants for their professional advice and services rendered to businesses.