Which of the following statements is true?
A)The CCA rate is the same for most asset classes, with the exception of land.
B)When an asset is sold, the salvage value is added to the aggregate value of the asset class.
C)If no assets are bought or sold, the CCA amount will be constant over time.
D)Claiming CCA over the years may result in the recapture of CCA upon disposition.

Question

Quizplus · Accepted Answer

Claiming CCA over the years may lead to recapture of CCA upon disposition. This means that if you sell or dispose of an asset for an amount greater than its undepreciated capital cost, you may have to pay tax on the recaptured CCA at that time.

Which of the Following Statements Is True