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 appears in the equity section of the statement of financial position?

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 appears in the equity section of the statement of financial position?

Quizplus · Accepted Answer

The equity section of the statement of financial position typically includes share capital and retained earnings. Share capital represents the funds raised by issuing shares, while retained earnings are the accumulated net income not distributed to shareholders as dividends. Choices A, B, and C do not accurately represent components typically found in the equity section.

Cost of the Asset$100,000