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

question 33

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

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Definitions:

Developing Countries

Refers to nations with lower levels of income, industrialization, and often a lower Human Development Index compared to developed countries.

Industrial Market Countries

Nations with economies mainly based on industrial production and services, with advanced technological infrastructure.

Labor Force

The labor force consists of all the working-age population who are willing and able to work, including both employed and unemployed individuals.

Agriculture

The practice of cultivating the soil, growing crops, and raising livestock for food, fiber, and other products that sustain human life.