Which of the following statements with respect to Class 14.1 is NOT correct?
A)If a disposition creates a negative balance in the UCC of the Class at the end of the year, 100 percent of the negative amount must be taken into income.
B)Appraisal costs associated with intangible business assets would be added to the Class.
C)The maximum CCA for the year is calculated as 5 percent of the ending balance in the Class.
D)If a business ceases to operate and there is a positive balance in the Class, it can be deducted in calculating net business income.

Question

Quizplus · Accepted Answer

The maximum Capital Cost Allowance (CCA) for Class 14.1 is calculated as 5 percent of the opening balance of the class, not the ending balance. This class is for specified intangible property in Canada, and the CCA rate is applied to the balance at the beginning of the tax year.

Which of the Following Statements with Respect to Class 14