The Three Factors That Generally Influence Depreciation Under IFRS/ASPE Are

question 59

Multiple Choice

The three factors that generally influence depreciation under IFRS/ASPE are: amount allowable for depreciation, allowable life of asset, and allowable methods of depreciation.In Canada, for tax purposes

• A)the amount allowable for CCA is the cost of the asset, and, the allowable life of asset and the amount of salvage value are determined by its Class under the Income Tax Act.
• B)the amount allowable for CCA is the cost of the asset; the tax-based depreciation rate is determined by the Class of the asset under the Income Tax Act, and neither the estimated life of asset nor the amount of estimated salvage value are relevant in calculating the CCA claim.
• C)the allowable depreciation for tax purposes (CCA)is increased for the first year only.
• D)depreciable assets are placed in various classes by the Income Tax Act, based on their estimated salvage value.
• E)in the year of acquisition of new assets into an existing pool the allowable CCA claim is based on 50% of all the assets in the pool.

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