Final answer:
The correct answer is option c. Capital, referring to Capital Cost Allowance (CCA) in Canada which defines the rate of depreciation for tax purposes.
Step-by-step explanation:
The CCA system specifies the capital rate a firm can use to depreciate its assets for tax purposes, known as the CCA rate. The correct option is c. Capital. The Capital Cost Allowance (CCA) is a tax deduction available in Canada, which allows businesses to claim depreciation on capital assets. Different types of assets are classified under different CCA classes, each with its own prescribed CCA rate. This rate determines the percentage of the asset's cost that can be deducted from taxable income each year.