Use the following two statements to answer this question:
I.The use of declining balance CCA means that the tax deductions will last forever and the asset is never fully depreciated.
II.The half-year rule results in CCA expense that is lower in year 1 and highest in year 2.

Question

Quizplus · Accepted Answer

The declining balance method means that the asset is never fully depreciated, as it always retains some value. The half-year rule reduces the CCA claim in the first year, leading to a higher claim in the second year.

Use the Following Two Statements to Answer This Question