Question

The Capital Cost Allowance system in Canada uses a _____ depreciation rate to calculate the depreciation...

The Capital Cost Allowance system in Canada uses a _____ depreciation rate to calculate the depreciation allowance for capital assets.

a. fixed

b. arbitrary

c. declining-balance

d. straight-line

e. proportional

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Answer #1

ANSWER :: (C) Declining-Balance

=> Explanation ::

Capital Cost Allowance System May business In Canada may claim Depreciation Expenses to Calculating Taxable Income Under The Act Of Canada.it Is Annual Deduction That Can claim by Canada. In that System They Use Declining Balance Depreciation Rate To calculatr The Depreciation Allowance For Capital Assets. In That Method it refers to The Assets Book Value At The Begening of the Year. This Method Calculate Each Year Total depreciation By Percentage on Assets Book Value.

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