Cost of the Asset$100,000

Cost of the asset$100,000
Life of the asset 5 years
Depreciation rate20%
Capital cost allowance rate 50%
Residual value of the asset nil
Income tax rate 50%
-How is the gross profit of a business calculated?

A) Gross profit is the difference between revenues and cost of sales.
B) Gross profit is the excess of revenues over the sum of cost of sales and operating expenses.
C) Gross profit is the sum of revenue and cost of sales.
D) Gross profit is the difference between revenues and cost of sales..