Columbia Corp.'s partial income statement for its first year of operations is as follows: $\begin{array}{lrr}
\text { Income before income taxes } & & \$ 1,750,000 \
\text { Income tax expense } & & \
\quad \text { Current } & \$ 483,000 & \
\quad \text { Deferred } & \underline{42,000} & \underline{525,000} \
\text { Net income } & & \$ 1,225,000
\end{array}$ Columbia uses straight-line depreciation for financial reporting purposes and CCA for tax purposes. The depreciation expense for the year was $ 700,000. Except for depreciation, there were no other differences between accounting income and taxable income. Assuming a 30% tax rate, what amount was claimed for CCA on the corporation's tax return for the year?

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The Answer of Columbia Corp.'s partial income statement for its first year of operations is as follows: $\begin{array}{lrr}
\text { Income before income taxes } & & \$ 1,750,000 \
\text { Income tax expense } & & \
\quad \text { Current } & \$ 483,000 & \
\quad \text { Deferred } & \underline{42,000} & \underline{525,000} \
\text { Net income } & & \$ 1,225,000
\end{array}$ Columbia uses straight-line depreciation for financial reporting purposes and CCA for tax purposes. The depreciation expense for the year was $ 700,000. Except for depreciation, there were no other differences between accounting income and taxable income. Assuming a 30% tax rate, what amount was claimed for CCA on the corporation's tax return for the year?

Columbia Corp Columbia Uses Straight-Line Depreciation for Financial Reporting Purposes and CCA