Course- introduction to taxation

1. The rate for a capital cost allowance (CCA) class is the minimum that can be claimed in the year.

true or false

2. Which of the following would not describe the tax treatment on the disposal of depreciable property?

a. If, at the end of the taxation year, all assets in a class have been disposed of, but a balance remains in the pool, the balance would be deductible from business income.

b. If the original cost exceeds the selling price of the property sold, a capital loss would be recognized.

c. If, at the end of a fiscal year, the balance of a pool is negative, the balance would be added to business income.

d. If the selling price exceeds the original cost of the property sold, a capital gain would be recognized.

3. A passenger vehicle purchased for a business costing $28000 plus GST/HST at 13%, would be added to class...

a. 8 b. 10 c. 53

d. 10.1