In Canada,the only effect of Capital Cost Allowance is to reduce a firm's
A) taxable income.
B) depreciation amount.
C) marginal revenue.
D) sales revenue.

Question

Quizplus · Accepted Answer

Capital Cost Allowance (CCA) is a tax deduction that allows businesses to deduct the cost of capital assets from their taxable income. This deduction is used to recover the cost of assets over time and reduce the tax burden on the business. Therefore, the only effect of CCA is to reduce the taxable income of the firm, making option A) the correct choice. The other options (B, C, and D) are not affected by CCA.

In Canada,the Only Effect of Capital Cost Allowance Is to Reduce