EGR Just Completed Its First Year End

EGR just completed its first year end.During the year, EGR recorded $12,000 in depreciation ($18,500 CCA) .In addition there was a deduction in the accounting records for meals and entertainment amounting to $6,000.As a result taxable income will:

A) be lower than accounting income by $5,500.
B) be higher than accounting income by $500.
C) be equal to accounting income.
D) be higher than accounting income by $5,500.
E) be lower than accounting income by $500.

Correct Answer:

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