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%
-Which of the following sections is part of the statement of income?
A) administrative expenses
B) future income taxes payable
C) long-term assets
D) retained earnings

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%
-Which of the following sections is part of the statement of income?
A) administrative expenses
B) future income taxes payable
C) long-term assets
D) retained earnings

Quizplus · Accepted Answer

Administrative expenses are part of the statement of income as they represent the costs associated with the general operation of a business.

Cost of the Asset$100,000