Since the calculation of CCA is based on the declining balance of UCC, the UCC never reaches zero.

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Quizplus · Accepted Answer

This statement is true. The CCA (Capital Cost Allowance) calculation is based on the declining balance of the UCC (Undepreciated Capital Cost), which means that the UCC reduces every year but will never reach zero. This is because the CCA rate is usually less than the declining balance rate, which ensures that the asset's cost is never fully depreciated.

Since the Calculation of CCA Is Based on the Declining