Question 15: Which of the following is correct? (1 Point) Capital cost allowance is the monies a firm has to spend to purchase its fixed assets. Capital cost allowance does not affect the net income of the firm. As a firm deducts capital cost allowance, the market value of its assets decreases. The half year rule permits firms to calculate CCA on only half of the asset's installed cost in the first year. Stay calm. Which of the following is correct? Question 16: (1 Point) The average tax rate is more important for decision making than the marginal tax rate. The dividend tax credit causes double taxation of dividends. Canadian corporations pay federal income taxes and also pay provincial income taxes. We do not take taxes into consideration when making financial decisions. Stay calm Question 17: Which of the following is correct? (1 Point) Interest expense increases the taxes owed by a firm. Dividends will increase the profit earned by a firm. Depreciation decreases the net income of a firm. Net income is equivalent to the operating cash flow of a firm. Earnings before taxes is either paid out as dividends to shareholders or interest to bondholders