By What Amount Does a Capital Cost Allowance (CCA)deduction Reduce

question 173

Multiple Choice

By what amount does a capital cost allowance (CCA) deduction reduce income taxes?

• A) One minus the tax rate multiplied by the amount of the CCA deduction.
• B) The tax rate multiplied by the amount of the CCA deduction.
• C) The amount of the CCA deduction.
• D) The amount of the CCA deduction divided by one minus the tax rate.

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Definitions:

Sea Levels

The average level of the surface of the ocean measured along a shoreline.

Carbon Dioxide Emissions

The emission of carbon dioxide into the air, mainly through the combustion of fossil fuels, playing a significant role in global warming and alterations in climate patterns.

Phosphorous

A reactive chemical element with the symbol P, essential for life but also a pollutant at high concentrations.

Methane

A potent greenhouse gas, CH4, that contributes to global warming, released through natural processes and human activities like agriculture.