Capital Cost Allowance (CCA)tax Shield Is the Tax ________ That

question 50

Multiple Choice

Capital Cost Allowance (CCA) tax shield is the tax ________ that result(s) from the ability to deduct CCA from taxable income.

• A) payment
• B) amount paid to the Canadian Revenue Agency (CRA)
• C) savings
• D) cash flows that the firm has to borrow from its creditor

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Definitions:

Seamounts

Underwater mountains formed by volcanic activity, not reaching the ocean's surface, and often a hotspot of marine life.

Island Chains

Sequential islands formed close to each other, often as a result of volcanic activity, and stretching out over distances in the ocean.

Seafloor Spreading

The process by which new oceanic crust is formed at mid-ocean ridges and slowly moves outward from the ridge, contributing to continental drift.

Kilometers Wide

A measurement indicating that the width of a geographical feature or object extends for several kilometers.