The Following Information Is Available for Ryan Corporation: Assets at Cost-$260,000

question 1

Multiple Choice

The following information is available for Ryan Corporation: Assets at cost-$260,000 (8 year life, straight-line depreciation, no salvage value, purchased 2 years ago) ; Accumulated depreciation-$65,000.Accumulated CCA-$105,300; CCA rate-30%; meals and entertainment recorded in the books-$12,000; golf dues paid and expensed on the books-$5,000; pre-tax accounting income-$40,000.No CCA was taken during the current year.Based on this information and a tax rate of 45%, what is taxable income?

• A)$34,000
• B)$46,000
• C)$35,000
• D)$51,000
• E)$41,000

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