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Refer to the figure shown. Which mechanism explains Panel 1?
Operation
In a business context, operation refers to the day-to-day activities necessary for running a company, which can include production, distribution, and the provision of services.
CCA Deductions
Refers to Capital Cost Allowance deductions in taxation, allowing businesses to claim depreciation on tangible capital assets.
CCA Tax Shield
Refers to the decrease in taxable income for businesses in Canada due to Capital Cost Allowance, which allows for the depreciation of tangible property to be deducted from taxable income.
Terminated Project
A project that has been ended prior to its completion due to various reasons such as feasibility, costs, or changes in strategy.
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