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 calculation determines the net revenue?
A) gross sales revenue less administrative expenses
B) gross sales revenue less trade discounts
C) gross sales revenue less operating expenses
D) gross sales revenue less cost of sales

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 calculation determines the net revenue?
A) gross sales revenue less administrative expenses
B) gross sales revenue less trade discounts
C) gross sales revenue less operating expenses
D) gross sales revenue less cost of sales

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 calculation determines the net revenue?
A) gross sales revenue less administrative expenses
B) gross sales revenue less trade discounts
C) gross sales revenue less operating expenses
D) gross sales revenue less cost of sales

Cost of the Asset$100,000