Final answer:
The Undepreciated Capital Cost (UCC) refers to the net book value of an asset, which represents the original cost minus any capital cost allowance claimed for tax purposes.
Step-by-step explanation:
The Undepreciated Capital Cost (UCC) is equivalent to the net book value of an asset. It is the cost of a capital asset that has not yet been claimed for capital cost allowance (CCA) purposes. The UCC takes into account the original cost of the asset (also known as the historical cost) and subtracts any CCA already taken to give the current value for tax purposes. Thus, it is not simply the acquisition cost, and it is not the amortization expense, which is the accounting term for depreciation. In simplest terms, the UCC is used to determine the remaining balance that can be depreciated for tax purposes.