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The Hard Disk of a Computer Running the Windows Server

question 13

Multiple Choice

The hard disk of a computer running the Windows Server 2019 operating system fails. A colleague tells you that the data on the hard disk can be regenerated as soon as it is replaced with a new one. Can you identify why this solution is feasible?


Definitions:

CCA Class

A categorization in Canadian tax law that determines the depreciation rate for tax purposes on capital assets.

Depreciation Tax Shield

A reduction in taxable income for a business, resulting from the depreciation expense claimed on tangible assets.

Tax Rate

The percentage of income or value that is collected by the government as tax.

MACRS Depreciation

A method of depreciation in the U.S. that allows for a faster write-off of assets under the tax code.

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