Columbia Corp

question 73

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

---

Definitions:

Chief Accounting Manager

A high-level executive responsible for overseeing a company's accounting activities and financial record-keeping.

Controller

A senior financial officer in an organization responsible for overseeing accounting and financial reporting.

Contingency Plan

A strategy or plan developed to take into account unforeseen events or emergencies to mitigate their potential impact on operations.

Bankruptcy

Legal nonpayment of financial obligations.