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%
-Retained earnings represent the amount of debt that a business owes to its shareholders.

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%
-Retained earnings represent the amount of debt that a business owes to its shareholders.

Quizplus · Accepted Answer

Retained earnings represent the portion of net income that a company retains and does not distribute to its shareholders as dividends. It is not a measure of debt.

Cost of the Asset$100,000