5.The Canada Revenue Agency allows corporations to deduct the following when calculating taxable income

a.declining-balance depreciation.

b.straight-line depreciation.

c.capital cost allowance.

d.one-half of the cost of the asset in the year of acquisition.

6.Which of the following statements is true with respect to intangible assets with indefinite lives?

a.They should be amortized over a period of 40 years.

b.They should be expensed to income in the year they are acquired.

c.They should be evaluated each year to determine if there has been any impairment in their value.

d.They are never amortized or written down but remain on the companys balance sheet at their original cost forever.

7.Upon the disposal of an asset, if the proceeds are greater than the carrying value of the asset, the company must

a.recognize a loss.

b.recognize a gain.

c,adjust the accumulated depreciation account so the carrying value equals the proceeds.

d.adjust the carrying value to market value.

8.Which of the following would not be capitalized as part of a purchased asset's cost?

a.Non-refundable taxes

b.Installation cost

c.Shipping costs

d.Insurance costs

9.The Canada Revenue Agency allows corporations to deduct the following when calculating taxable income

a.declining-balance depreciation.

b.straight-line depreciation.

c.capital cost allowance.

d.one-half of the cost of the asset in the year of acquisition.