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%
-The accounting equation is expressed as follows: A = E + L.

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%
-The accounting equation is expressed as follows: A = E + L.

Quizplus · Accepted Answer

The accounting equation is Assets (A) = Equity (E) + Liabilities (L), which is a fundamental principle in accounting that ensures the balance sheet is balanced.

Cost of the Asset$100,000