A Company Has Income Before Tax of $200,000

question 30

Essay

A company has income before tax of $200,000. The company also has a temporary difference of $80,000 relating to capital cost allowance (CCA)in excess of depreciation expense recorded for the year. There are no other permanent or temporary differences. The income tax rate is 40%.
Required:
Compute the amount of taxes payable and income tax expense.

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Definitions:

Characteristic Impedance

A measure of how a conductor appears (regardless of length) to a high-frequency signal; for instance, a truck J1939 data backbone has a characteristic of 120 ohms. It cannot be measured with an ohmmeter.

J1939 Data Bus

A communication protocol based on CAN (Controller Area Network) used for the electronic control system of heavy-duty vehicles to transmit data and control information among various vehicle components.

Field Effect Transistor (FET)

An electronic relay switch of which there are two types: N-channel and P-channel. A gate (terminal) is used to alter channel status. Channel allows current to flow or not to flow from the source terminal to the drain terminal. Used on many current truck electronic systems because of their ability to allow a very small current to control a high current.

Gate Channel Resistance

The resistance encountered in the channel of a gate in semiconductor devices, affecting electron flow and the device’s electrical characteristics.