Suppose a Firm Has a Negative UCC Balance

Multiple Choice

Suppose a firm has a negative UCC balance. They:

A) Can claim the amount as a tax deductible expense.
B) Must add the amount (as a positive number) to their taxable income.
C) Should sell off all items in the asset pool.
D) Can calculate CCA for the year using the negative balance.
E) Should use the negative amount as a future tax loss.