Amtrak,a Company That Provides Passenger Railway Service,has Been Struggling Financially

question 42

Multiple Choice

Amtrak,a company that provides passenger railway service,has been struggling financially and would like to stop service on its least profitable routes.Amtrak is usually relatively independent;it sets ticket fares and schedules,decides how to invest in new equipment,and is expected to generate enough revenue to cover expenses.However,the U.S.Congress stops them from cutting unprofitable service routes because,as a/an ____________________,part of Amtrak's purpose is to serve the entire country,even little-used rural passenger routes.

• A) public corporation
• B) private corporation
• C) cabinet department
• D) government corporation
• E) independent agency

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Definitions:

Temporary Difference

Refers to differences between the carrying amount of an asset or liability in the balance sheet and its tax base that will result in taxable or deductible amounts in future periods.

Straight Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts.

Capital Cost Allowance

A tax deduction in Canada for the depreciation of tangible property.

Deferred Tax

A tax liability or asset that arises due to temporary differences between the book value and tax value of assets and liabilities.