Suppose a Project Requires 39,302 Pounds of Steel for Columns

question 12

Multiple Choice

Suppose a project requires 39,302 pounds of steel for columns and beams. What is the calculation for the equivalent amount in tons?

• A) 39,302 x 2.12
• B) 39,302 / 2,000
• C) 39,302 / 27
• D) 39,302 x 0.6944

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Definitions:

Depreciation

An accounting method used to allocate the cost of a tangible asset over its useful life.

Net Capital Spending

The total expenditure on physical assets less any asset sales, reflecting how much a company is investing in its physical assets.

CCA Rate

The annual depreciation rate used under the Canadian tax system to calculate depreciation expense for tax purposes on a depreciable asset.

CCA

An acronym that can stand for Capital Cost Allowance, which is a tax deduction for depreciable property in Canada.