When assets are sold from a CCA pool:
A)Other assets' values increase
B)The assets sold continue in the pool
C)A new rate is used in the pool
D)The remaining pool is subject to the net acquisitions rule

Question

Quizplus · Accepted Answer

When assets are sold from a CCA pool, the remaining pool is subject to the net acquisitions rule. This means that the remaining undepreciated balance of the pool is reduced by the proceeds from the sale. The net income for the year will be reduced by the amount of the sale proceeds, and the CCA deduction for future years will be reduced by the same amount. The assets sold are removed from the pool, and a new CCA rate may be used for the remaining assets in the pool. However, the values of other assets in the pool are not affected by the sale.

When Assets Are Sold from a CCA Pool