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) In the year of the acquisition, the CCA claim is based on half the cost of the asset.

Question

Quizplus · Accepted Answer

In the year of acquisition, the CCA claim is based on half the cost of the asset. The other statements are incorrect. The CCA rate varies by asset class, salvage value is not added to the aggregate value, and the CCA amount can change over time based on assets bought and sold.

Which of the Following Statements Is True