Which of the Following Statements Is True

question 40

Multiple Choice

Which of the following statements is true?

• A)The CCA rate is the same for most asset classes, with the exception of land.
• B)When an asset is sold, the salvage value is added to the aggregate value of the asset class.
• C)If no assets are bought or sold, the CCA amount will be constant over time.
• D)Claiming CCA over the years may result in the recapture of CCA upon disposition.

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Definitions:

Foreign Firms

Businesses that operate in a country other than where their original headquarters are located.

Revenue Decrease

A decline in the amount of money received from sales or services over a certain period.

Ethanol Imported

Refers to ethanol (a biofuel) that is bought from foreign producers and brought into a country’s borders, often used as an additive in gasoline.

Consumer Surplus

The contrast between the total expenditure consumers are willing to make on a good or service and the total expenditure they actually make.