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 included in the statement of changes in equity?
A) other income
B) contributed surplus
C) earnings before income taxes
D) deferred income

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 included in the statement of changes in equity?
A) other income
B) contributed surplus
C) earnings before income taxes
D) deferred income

Quizplus · Accepted Answer

Contributed surplus is included in the statement of changes in equity as it represents the excess amounts paid by shareholders over the par value of the shares. Other options like other income, earnings before income taxes, and deferred income are typically included in the income statement or balance sheet, not the statement of changes in equity.

Cost of the Asset$100,000