When a company invests in equipment,it gets to immediately expense the cost of the equipment on the company's income tax return filed with Canada Customs and Revenue Agency (CCRA).

Question

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When a company invests in equipment, it cannot immediately expense the full cost of the equipment on its income tax return. Instead, it has to capitalize the cost and depreciate it over its useful life. This depreciation expense is then deducted on the company's income tax return over several years.

When a Company Invests in Equipment,it Gets to Immediately Expense