Caleb Is Driving a Car in Which Dotty Is a Passenger

question 27

Multiple Choice

Caleb is driving a car in which Dotty is a passenger when an accident occurs.Caleb and Dotty are emotionally rattled,but neither is physically hurt.Caleb is not liable to Dotty on a negligence theory because

• A)both parties were emotionally rattled.
• B)Caleb did not apparently intend to cause an accident.
• C)Dotty must have been comparatively negligent.
• D)Dotty was not injured.

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Definitions:

CCA Rate

The Capital Cost Allowance rate, which is used for tax purposes to determine the yearly depreciation expense that can be claimed on tangible and intangible assets.

Depreciation Tax Shield

The reduction in income tax expense realized by depreciating fixed assets for tax purposes.

CCA Class

Classified as Capital Cost Allowance, it refers to the categorization in tax systems for claiming depreciation expense for tax purposes.

Borrowed Funds

Money that has been obtained through loans or credit from financial institutions or individuals, which typically needs to be repaid with interest.