The Income Tax Act requires that companies use a declining-balance method for calculating the maximum capital cost allowance that may be claimed in any period

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This statement is true. The Income Tax Act specifies that companies must use the declining-balance method, which is a method that allows businesses to claim a faster deduction for the depreciation of an asset in the early years of its use, than in the later years. This method results in larger deductions for capital assets in the earlier years, and smaller deductions in later years.

The Income Tax Act Requires That Companies Use a Declining-Balance