Which of the Following Is Correct Regarding CCA Rates

question 54

Multiple Choice

Which of the following is correct regarding CCA rates?

• A)Capital cost allowance (CCA) rates are based on the declining balance for tax calculation.
• B)Capital cost allowance (CCA) rates are based on the straight-line depreciation rates found in GAAP.
• C)Capital cost allowance (CCA) rates are based on the SYD calculations.
• D)Capital cost allowance (CCA) rates are based on strict rules found in IFRS.

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Definitions:

Shortage

A situation where the demand for a product exceeds its supply in a market.

Units

The fundamental quantities or measurements in which variables, goods, services, or products are expressed or quantified.

Price Floor

A legally imposed minimum price set above the equilibrium price, preventing the market price from falling below a certain level.

Demand Decreases

A situation where the quantity of a good or service that consumers are willing and able to purchase at a given price declines.