Which of the following correctly describes the impact of CCA being an accelerated tax deduction?
A) There is no impact on the timing of the deductions
B) The deduction is received evenly throughout the asset's life
C) More of the deduction is received earlier in the asset's life
D) More of the deduction is received later in the asset's life

Question

Quizplus · Accepted Answer

CCA being an accelerated tax deduction means that more of the deduction is received earlier in the asset's life. This is because the tax deduction is calculated based on a higher percentage of the asset's cost in the first few years of use, allowing for larger deductions in earlier years.

Which of the Following Correctly Describes the Impact of CCA