When an Asset, Which Had Been in Use for Several

question 20

Multiple Choice

When an asset, which had been in use for several years, is sold at a price that exceeds the balance in the UCC account but is less than book value

• A) The excess amount is called CCA
• B) The excess amount is called is a capital gain
• C) The excess amount is called recaptured CCA
• D) The excess amount reduce taxable income
• E) The excess amount is not considered income

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Definitions:

Fixed Cost

Expenses that do not change with the level of production or output within a certain range or period.

Variable Cost

Costs that vary directly with the level of production or output, such as materials and labor.

Operating

The day-to-day activities or functions necessary for a business or organization to run effectively and efficiently.

Competitive Market

A market structure characterized by many buyers and sellers, free entry and exit, and a product for which there are many substitutes.