Use the Following Two Statements to Answer This Question

question 76

Multiple Choice

Use the following two statements to answer this question:

• A) I and II are correct.
• B) I and II are incorrect.
• C) I is correct, II is incorrect.
• D) I is incorrect, II is correct.
• I.The use of declining balance CCA means that the tax deductions last forever and the asset is never fully depreciated.
• II.The half-year rule results in CCA expense that is lower in year 1 and highest in year 2.

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Definitions:

Capital Intensive

Describing a business that requires significant investment in capital assets like machinery and equipment to produce goods or services.

Customer Relationship

The management of interactions and engagements between a business and its customers, focusing on long-term relationship building.

Tangible Property

Physical assets that can be touched and seen, such as real estate, equipment, and inventory.

Operational Excellence

A philosophy of organizational leadership that emphasizes continuous improvement, problem-solving, and employee engagement to ensure sustainable business growth.