Question: ABC Inc s revenue and costs for the current year were

ABC Inc.’s revenue and costs for the current year were the following:
Revenue ............ $500,000
Cost of sales .......... 300,000
Gross profit ........... 200,000
Operating expenses ....... 100,000
The company’s statement of financial position shows the gross value of non-current assets as $100,000. The company’s straight-line depreciation rate for the asset is 15%, and the CCA rate is 30%. The company’s income tax rate is 50%.

1. Calculate the company’s future income taxes payable during the first five years.
2. Prepare the statement of income by using year two of the CCA and depreciation rates. Assume the same operating results as the current year.

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  • CreatedDecember 03, 2014
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