Old Time Company purchased a Class 10 truck many years ago for $8,000. The truck has now
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Old Time Company purchased a Class 10 truck many years ago for $8,000. The truck has now become a collectors’ item and was sold on August 1, 2017, for $10,000. The netbook value on that date was $500 and the Class 10 UCC balance was $11,525. There are other assets left in the class. Accounting net income before tax for the year ended December 31, 2017, was $24,000. Amortization of depreciable capital assets for accounting purposes is equal to the CCA deducted for tax purposes. Net income for tax purposes is:
Select one:
a. $25,000.
b. $26,000.
c. $15,000.
d.$15,500.
Related Book For
Accounting Tools for Business Decision Making
ISBN: 978-1118096895
6th edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
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