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 difference between non-current assets and administrative expense gives the net capital assets which is the amount shown on 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%
-The difference between non-current assets and administrative expense gives the net capital assets which is the amount shown on the statement of financial position.

Quizplus · Accepted Answer

Non-current assets minus accumulated depreciation (not administrative expense) gives the net book value of the assets, which is the amount shown on the statement of financial position. Administrative expenses are operational expenses and do not directly reduce the value of non-current assets on the balance sheet.

Cost of the Asset$100,000