Which of the Following Statements with Respect to the General

question 113

Multiple Choice

Which of the following statements with respect to the general rate reduction for corpora- tions is not correct?

• A)The general rate reduction is calculated by applying a specified percentage to full rate taxable income.
• B)Full rate taxable income for a public company is reduced by the income eligible for the manufacturing and processing deduction.
• C)The general rate reduction is not available to Canadian Controlled Private Corpora- tions (CCPCs).
• D)While the basic tax rate for corporations remains at 38 percent, the general rate re- duction serves to reduce the effective tax rate for corporations that have full rate taxable income.
• Foreign Tax Credits

---

Definitions:

Work in Process Inventories

Goods that are in the production process but have not yet been completed.

Fixed Overhead Budget Variance

The difference between the actual fixed overhead costs incurred and the budgeted or expected fixed overhead costs.

Standard Cost System

A cost accounting system where predetermined costs are used for valuing inventory and measuring performance.

Direct Labor Costs

The total of all wages, benefits, and taxes paid to employees who are directly involved in the manufacturing of products.