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According to Canada Revenue Agency

Question 21

Multiple Choice

According to Canada Revenue Agency:


A) I and II are correct.
B) I and II are incorrect.
C) I is correct, II is incorrect.
D) I is incorrect, II is correct.
I.The purchase cost of a capital asset is to be capitalized and its value expensed as depreciation expense over future periods.
II.The modification costs of a capital asset have to be expensed immediately.

Correct Answer:

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