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:

Professional Services

Expert services provided by qualified professionals such as lawyers, accountants, and consultants.

Service Shops

Businesses that provide professional or technical services rather than products, often requiring specialized labor or skills.

Mass Services

Services provided on a large scale to a broad population where individual customer interactions are relatively uniform and low in complexity.

Process Costing

A costing method used in industries where production is continuous, assigning costs to units of output on the basis of average costs for each process or department.