Sample CCA Rates and Classes Are Presented as Follows

question 31

Multiple Choice

Sample CCA Rates and Classes are presented as follows: What does the number "20" in the CCA Rate column mean?

• A)A firm can claim a 20% depreciation rate per year for an asset such as machinery, office furniture, and equipment during its service life.
• B)A firm can claim a 20% depreciation rate per year for an asset such as machinery, office furniture, and equipment beginning in the second half of the year after purchase of that asset.
• C)A firm can fully depreciate an asset such as machinery, office furniture, and equipment in 5 years from the time it is purchased using the depreciation rate of 20% per year.
• D)A firm can claim a 20% depreciation rate on half of the capital cost of a new asset such as machinery, office furniture and equipment in the year of purchase of that asset, while the other half is included in the following year.
• E)A firm can only depreciate an asset such as machinery, office furniture, and equipment with the rate of 20% in the first year of purchase of that asset.

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Definitions:

Decision Making Under Uncertainty

The process of making choices in situations where the outcomes or consequences of actions are unknown or unpredictable.

Decision Tree

A graphical means of analyzing decision alternatives and states of nature.

Analytic Decision Process

A systematic approach to problem-solving and decision-making that relies on logical analysis and data evaluation.

Decision-making Process

The series of steps or stages involved in selecting the best course of action among several alternatives to achieve a desired outcome.