Which of the following best describes CCA?

Multiple Choice

• Refers to the ending balance of an asset class after depreciation has been deducted.

• Refers to the beginning balance of an asset class before depreciation has been deducted.

• The method by which Canadian businesses may claim depreciation expense for calculating taxable income under the Canadian Income Tax Act.

• Refers to a government tax credit provided to Canadian businesses for upgrading their capital assets.

• The method by which Canadian businesses may record capital assets under the Canadian Income Tax Act.