The Capital Cost Allowance (CCA)
A)ignores residual value.
B)has prescribed depreciation rates.
C)is very similar to accelerated depreciation rates.
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

The Capital Cost Allowance (CCA) system in Canada allows for the deduction of the cost of depreciable property (like buildings, equipment, or vehicles) from taxable income through depreciation. It indeed ignores the residual value of assets, has prescribed rates set by the Canada Revenue Agency, and often results in accelerated depreciation compared to straight-line methods, making all of the above statements correct.