Which of the Following Statements Regarding CCA Is True

question 27

Multiple Choice

Which of the following statements regarding CCA is true?

• A) Since CCA deduction is not a cash expense, it plays no role in capital budgeting.
• B) The CCA method uses a specific mandated CCA rate for each asset class.
• C) The CCA deduction is equal to the year-end UCC for the pool divided by the mandated CCA rate.
• D) The CCA method allows that the net capital cost of an asset is added to the pool in the year the asset is put in use.

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