If a Foreign Company Is Taken Over by the Host-Country

question 48

True/False

If a foreign company is taken over by the host-country government and some form of compensation is paid,confiscation is said to have occurred.

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Definitions:

CCA Class

Stands for Capital Cost Allowance Class, a categorization in Canadian tax law used to determine the depreciation rate for tax purposes on tangible capital assets.

Book Value

The net value of a company's assets, minus its liabilities and intangible assets, as recorded on the balance sheet.

Depreciated

Describes the reduction in value of an asset over time, often due to wear and tear or obsolescence.

Current

Pertaining to the present time or most recent; also refers to assets and liabilities expected to be used or paid within a year.