In Its 2017 Income Statement, Its First Year of Operations

question 26

Multiple Choice

In its 2017 income statement, its first year of operations, Penelope Corp. reported depreciation of $525,000 and interest revenue from a Canadian corporation of $105,000. For 2017 income tax purposes, Maine claimed CCA of $825,000. The difference in depreciation/CCA will reverse in equal amounts over the next three years. Penelope's income tax rates are 35% for 2017, 30% for 2018, and 25% for both 2019 and 2020. What amount should be included as the deferred tax liability on Penelope's December 31, 2017 statement of financial position?

• A)$99,000
• B)$90,000
• C)$80,000
• D)$75,000

Understand the reasons behind an organization's success in attracting and retaining employees.

Grasp the concept and applications of different HR information systems, including talent inventories.

Identify effective recruiting strategies based on organizational needs and market conditions.

Recognize the role of management and organizational culture in employee retention.

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Definitions:

WACC

Stands for Weighted Average Cost of Capital, which calculates a firm's cost of capital, considering the proportion of each capital component, including debt and equity.

NPV

Net Present Value (NPV) is the calculation used to find today’s value of a future stream of payments, subtracting the initial investment.

Cash Flow

The complete financial movement into and out of a corporation, especially regarding its liquidity.

Equivalent Annual Annuity

A calculation used to compare the returns of investments with different payment schedules by converting them into an equivalent sum received at regular annual intervals.