A Company Has Income Before Tax of $200,000

question 48

Multiple Choice

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%. The taxes payable are:

• A)$48,000
• B)$80,000
• C)$112,000
• D)$32,000

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Definitions:

Compliance

Following rules, standards, or laws, or the act of adhering to requests or demands from others.

Adherence

The extent to which individuals follow the rules, guidelines, or treatment plans prescribed by authorities or experts, often used in contexts like healthcare, law, and organizational policies.

Commitment

The state or quality of being dedicated to a cause, activity, or goal.

Coalition Building

The process of assembling a temporary alliance or partnership of groups in order to achieve a common goal.