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 first level of profitability shown on the statement of income?
A) profit for the year
B) profit before taxes
C) operating income
D) gross profit

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 first level of profitability shown on the statement of income?
A) profit for the year
B) profit before taxes
C) operating income
D) gross profit

Quizplus · Accepted Answer

The Answer of 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 first level of profitability shown on the statement of income?
A) profit for the year
B) profit before taxes
C) operating income
D) gross profit

Cost of the Asset$100,000