AFM 361 Chapter Notes -Mathematical Analysis, Capital Cost, Grain Elevator

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM 361
• Professor: Kevin Markle

Document Summary

General deduction of expenditures: generally, research and development expenditures, including most capital expenditures, made in a tear are fully deductible. The investment tax credit is calculated as a specified percentage of the sr&ed expenditures made: expenditures on buildings are excluded from the 100% write-off. Election method to determine deduction: an election is available as an alternative method for determining which expenditures incurred in canada will qualify as sr&ed, to be included in the pool, more detail in chapters 11 and 12. Overview: purpose, the investment tax credit (itc) was introduced in 1975 as a temporary extra incentive to stimulate new investment in canada in certain specific business sectors and regional locations, three credits apply to all of canada: Scientific research and experimental development (sr&ed) expenditures. Those available itcs that are not applied in the year of acquisition or expenditure can be carried back three taxation years and forward. General rates of investment tax credits 1: computation of investment tax credit.