Capital cost allowance for each class can be calculated using the declining balance method or the straight line method, as long as it is the same method used to calculate amortization for the financial statements.

Question

Quizplus · Accepted Answer

Capital cost allowance (CCA) is calculated using the declining balance method as specified by the Canada Revenue Agency (CRA), and it does not have to match the amortization method used for financial statement purposes, which can be straight-line or another method.

Capital Cost Allowance for Each Class Can Be Calculated Using