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CCA,depreciation,andAppendix8[1][1].A - a declining balance...

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Comments about CCA and depreciation, for both assignment and final exam You do not need to know all of the accounting details from Chapter 8. For the assignment and for the final exam, we will always assume that there are other assets remaining in the asset class. Therefore you can ignore "termination of asset pool" and "recaptured depreciation" on page 254. Accountants may make a language distinction between CCA and depreciation. The argument is that "depreciation" is not the name of the tax deduction; instead, the tax deduction is for CCA, and the CCA is computed according to some depreciation method. Two methods are "CCA computed using
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Unformatted text preview: a declining balance depreciation method" and "CCA computed using the straight-line depreciation method." We do not worry about the language distinction in 3530. Whenever we refer to depreciation, we are talking about the tax deduction. The Blooper Industries discussion from Section 8.7 is an excellent example of the CCA calculations. Note that Table 8.6 is NOT needed to find the NPV, and there is no reason to include a table like that for any assignment question. Finally, you are NOT responsible for Appendix 8.A. 1...
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