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%
-Both, distribution costs and administrative expenses are part of the cost of goods sold in the statement of 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%
-Both, distribution costs and administrative expenses are part of the cost of goods sold in the statement of income.

Quizplus · Accepted Answer

Distribution costs and administrative expenses are not part of the cost of goods sold; they are typically listed separately on the income statement. Cost of goods sold primarily includes the direct costs attributable to the production of the goods sold by a company.

Cost of the Asset$100,000