When Canadian corporations are calculating their amortization expenses for income tax purposes:
A) they must use the Capital Cost Allowance Rate.
B) any method may be used if it qualifies under generally accepted accounting principles.
C) they must use straight line amortization.
D) they must use the declining balance method.

Question

Quizplus · Accepted Answer

Canadian corporations must use the Capital Cost Allowance (CCA) rates specified by the Canada Revenue Agency (CRA) for calculating amortization expenses for income tax purposes, rather than choosing their own method.

When Canadian Corporations Are Calculating Their Amortization Expenses for Income