Under the capital cost allowance system, which of the following is NOT relevant?
A) the capital cost of the asset
B) the asset class
C) the half-year rule
D) the asset's residual value

Question

Quizplus · Accepted Answer

The capital cost allowance system requires taxpayers to allocate the cost of capital assets over a period of time. To determine the allowance, taxpayers need to consider the capital cost of the asset, the asset class, and the half-year rule. However, the residual value of the asset is not relevant to determine the capital cost allowance.

Under the Capital Cost Allowance System, Which of the Following