With regard to depreciation and income taxes, which of the following statements is not true?
A)When calculating taxable income, the taxpayer must choose the method that best reflects the pattern in which the asset's future economic benefits are consumed.
B)When calculating taxable income, the taxpayer must use the rate set by Canada Revenue Agency.
C)When calculating taxable income, the taxpayer must use the single diminishing-balance method for most assets.
D)Capital cost allowance is an optional deduction from taxable income.

Question

Quizplus · Accepted Answer

The taxpayer is not required to choose a method that reflects the pattern of economic benefits; they must follow the prescribed methods and rates by the tax authority.

With Regard to Depreciation and Income Taxes, Which of the Following