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%
-What is the accounting equation?

Name: 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% -What is the accounting equation?
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Question

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%
-What is the accounting equation?

Quizplus · Accepted Answer

The correct accounting equation is Assets (A) = Liabilities (L) + Equity (E), which is represented by choice A.

Cost of the Asset$100,000