The depreciation method that most closely resembles what is allowable for tax purposes under CRA is
A)the straight-line method.
B)units-of-activity method.
C)the declining-balance method.
D)depletion method.

Question

Quizplus · Accepted Answer

The declining-balance method most closely resembles what is allowable for tax purposes under the Canada Revenue Agency (CRA), as it allows for a faster depreciation rate in the earlier years of an asset's life, similar to the Capital Cost Allowance (CCA) system used by the CRA.

The Depreciation Method That Most Closely Resembles What Is Allowable