This exercise uses the FlyFast Airways data from Starter 10-6. FlyFast is comparing the CCA method used

Question:

This exercise uses the FlyFast Airways data from Starter 10-6. FlyFast is comparing the CCA method used for income tax purposes with the straight-line amortization method.
1. Calculate the amount of CCA, at a rate of 25 percent that FlyFast will be able to claim in its first year.
2. Why does the Government of Canada, through the CCA, regulate the amount of amortization that a company can claim for income tax purposes?