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[08] Columbia Corp.'s partial income statement for its first year of operations is as follows Income before income taxes $1,750,000 Income tax expense Current $
[08] Columbia Corp.'s partial income statement for its first year of operations is as follows Income before income taxes $1,750,000 Income tax expense Current $ 483,000 Deferred 42,000 525,000 Net income $1,225,000 Columbia uses straight-line depreciation for financial reporting purposes and CCA for tax purposes. The depreciation expense for the year was $ 700,000. Except for depreciation, there were no other differences between accounting income and taxable income. Assuming a 30% tax rate, what amount was claimed for CCA on the corporation's tax return for the year? Select one: a. $ 560,000 b. $ 665,000 c. $ 700,000 d. $ 840,000 e. None of the above answers are correct
[08] Columbia Corp.'s partial income statement for its first year of operations is as follows
Income before income taxes $1,750,000
Income tax expense
Current $ 483,000
Deferred 42,000 525,000
Net income $1,225,000
Columbia uses straight-line depreciation for financial reporting purposes and CCA for tax purposes. The depreciation expense for the year was $ 700,000. Except for depreciation, there were no other differences between accounting income and taxable income. Assuming a 30% tax rate, what amount was claimed for CCA on the corporation's tax return for the year?
Select one:
a.
$ 560,000
b.
$ 665,000
c.
$ 700,000
d.
$ 840,000
e.
None of the above answers are correct
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