Use the Following Two Statements to Answer This Question

question 112

Multiple Choice

Use the following two statements to answer this question:
I.The use of declining balance CCA means that the tax deductions will last forever and the asset is never fully depreciated.
II.The half-year rule results in CCA expense that is lower in year 1 and highest in year 2.

• A)I and II are correct.
• B)I and II are incorrect.
• C)I is correct, II is incorrect.
• D)I is incorrect, II is correct.

---

Definitions:

Inefficiency

The failure to use resources in the most cost-effective manner, often leading to wasted potential output.

Wheat

A cereal grain cultivated worldwide and a staple food in many parts of the world, used for making flour, bread, and other food products.

Wine

An alcoholic beverage made from fermented grapes or other fruits, with variations in taste and strength depending on the type of grape and production process.

Production Possibility Frontier

An image projecting the ultimate production capacities for a duo of items, rooted in a given assortment of inputs including resources and extra aspects.