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%
-Where is the profit for the year transferred?

A) The profit for the year shown on the statement of financial position is transferred to the statement of retained earnings.
B) The profit before taxes is transferred to the statement of cash flows.
C) The profit for the year shown on the statement of changes in equity is transferred to the statement of income.
D) The profit for the year shown on the statement of income is transferred to the statement of changes in equity.