MC-Class-CCA

MC-Class-CCA - CAPITAL COST ALLOWANCE MULTIPLE CHOICE 1....

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CAPITAL COST ALLOWANCE MULTIPLE CHOICE 1. The repayment of government assistance with respect to a depreciable property is: (a) deducted from the capital cost of the asset (b) recorded as an expense (c) recorded as a revenue (d) added to the capital cost of the asset (e) none of the above 2. The earliest CCA can be claimed is generally when an asset is: (a) paid for (b) put to its intended use (c) recorded as an asset on the books of account (d) ordered (e) none of the above 3. Taxpayers who decide to capitalize interest on newly acquired assets do so: (a) only on the full amount of interest incurred in the year on all assets acquired during the year (b) only on interest incurred in the year on assets which cost more than $10,000 (c) on the full amount of interest incurred in the year on selected assets acquired during the year (d) on any portion of the interest incurred in the year on selected assets acquired during the year (e) none of the above 4. Any property, the disposition of which would be included in income as an eligible capital amount, is referred to as: (a) cumulative eligible capital (b) an eligible capital property (c) an eligible capital expenditure (d) an eligible capital amount (e) none of the above
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5. Depreciable assets disposed of in a non-arm’s length transaction at less than fair market value are deemed to be disposed of at: (a) fair market value (b) the amount received by the vendor (c) the vendor’s cost (d) the vendor’s undepreciated capital cost (e) none of the above 6. On January 10, Adrian, the proprietor of Adrian’s Antiques, disposed of an eligible capital property which cost $20,000 three years ago. He received proceeds of $10,000, 75 per cent of which he credited to his cumulative eligible capital account, which had a balance of $46,000 prior to this
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This note was uploaded on 01/07/2012 for the course ACCT 4453 taught by Professor Gorman during the Spring '11 term at Dalhousie.

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MC-Class-CCA - CAPITAL COST ALLOWANCE MULTIPLE CHOICE 1....

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