Which of the Following Cases Is Not Eligible for Capital

question 8

Multiple Choice

Which of the following cases is not eligible for capital cost allowance in the current year?

• A) A new engine is installed in a semi-trailer that is used to haul produce to the United States.
• B) An employee owns and uses an automobile in the course of her employment duties during the month of December. Her pay for December is not received until January of the following year.
• C) A piece of equipment was purchased during the year on a 5 year financing term.
• D) A building under construction is scheduled for completion in eighteen months. The building will be used as a production facility.

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Definitions:

OM Strategies

Refers to the approaches and methods implemented in Operations Management to efficiently produce goods and services.

Over Capacity

A situation where a facility produces more goods or services than currently needed, leading to inefficiency and increased costs.

Dreamliner 787

The Dreamliner 787 is a long-range, wide-body, twin-engine jet airliner developed by Boeing, known for its fuel efficiency and passenger comfort features.

International Business

A firm that engages in cross-border transactions.