Which of the Following Is an Example of a Tax

question 25

Multiple Choice

Which of the following is an example of a tax expenditure?

• A)tax breaks to companies that invest in innovation and expansion
• B)federal grants to companies for research and development
• C)federal loans to banks
• D)fees paid to farmers for not planting their fields

---

Definitions:

After-Tax Salvage Value

The after-tax salvage value is the net value of a depreciated asset at the end of its useful life, after accounting for taxes on any difference between the sales price and the book value of the asset.

Straight-Line Depreciation

A technique for distributing the expense of a physical asset evenly across its lifespan in identical yearly sums.

Tax Rate

The percentage at which an individual or corporation is taxed, often varying by income level, legal entity, or country.

CCA Class

In Canadian tax law, refers to the classification of depreciable property for purposes of calculating capital cost allowance, which is a type of depreciation for tax purposes.