The Amount to Include in the Entry to Record the Cost

question 40

Multiple Choice

The amount to include in the entry to record the cost of a property,plant,and equipment asset would include:

• A)acquisition cost.
• B)freight.
• C)installation.
• D)All of these answers are correct.

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Definitions:

CCA Class

Categorization within the Capital Cost Allowance system in Canada that determines the depreciation rate for tax purposes on assets.

Tax Rate

The amount of money, in terms of a percentage, that the government collects as tax from enterprises or persons.

Cost Of Debt

The return that lenders require on the firm’s debt.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset evenly across its useful life.