Which of the Following Statements Regarding CCA Is True

Multiple Choice

Which of the following statements regarding CCA is true?

A) Since CCA deduction is not a cash expense, it plays no role in capital budgeting.
B) The CCA method uses a specific mandated CCA rate for each asset class.
C) The CCA deduction is equal to the year-end UCC for the pool divided by the mandated CCA rate.
D) The CCA method allows that the net capital cost of an asset is added to the pool in the year the asset is put in use.