Higher Depreciation Rates

question 53

Multiple Choice

Higher depreciation rates:

• A)allow more depreciation over the asset's life.
• B)decrease the CCA depreciation tax shield.
• C)Have no effect on the CCA tax shield.
• D)allow assets to be depreciated more rapidly.

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Definitions:

Hourly Rate

A set amount that an employee is paid for each hour of work.

Estimate

A rough calculation or educated guess of a figure based on available information.

Amortization Table

A listing of the unpaid principal, the monthly payment, the amount allocated to paying down the principal, and the amount allocated to interest.

Spreadsheet

A digital document composed of rows and columns that helps in organizing, analyzing, and storing data, often used for financial calculations.