Columbia Corp

question 49

Multiple Choice

Columbia Corp.'s partial income statement for its first year of operations is as follows: Columbia uses straight-line depreciation for financial reporting purposes and CCA for tax purposes. The depreciation expense for the year was $700,000. Except for depreciation, there were no other differences between accounting income and taxable income. Assuming a 30% tax rate, what amount was claimed for CCA on the corporation's tax return for the year?

• A)$560,000
• B)$665,000
• C)$700,000
• D)$840,000

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Definitions:

Extensors

muscles that increase the angle between components of a limb, working to extend or straighten out the limb.

Tissue

Groups of similar cells in an organism that work together to perform specific functions.

Pathology Present

The existence of disease or disease processes as identified by studying bodily tissues and fluids.

Muscular

Relating to or affecting the muscles of the body.