Answer:
c. $1,890
Explanation:
As for the provided information, we have
Net income is the income after allowing expenses of every nature, and after taxes, but does not include the dividend as is not an expense but allocation or distribution of profits.
Thus net income shall be as follows:
Sales - Expenses
Sales = $10,000
Expenses = $4,000 + $1,100 + $1,750 = $6,850
Profit before taxes = $3,150
Less: Taxes @ 40% = $1,260
Net Income = $1,890
Correct option is
c. $1,890
The answer is may 23 because <span>They will receive a 3% discount if paid within 10 days, and a 1% discount if paid within 20 days. </span>
Answer :
Net salvage value = $147,490
Explanation :
As per the data given in the question,
Cost of equipment = $287,600
Expire time = 2 years
Depreciation rate for first 2 years = 0.20, 0.32
Based on the above information, we need to do following calculations which are shown below:
Total accumulated depreciation of equipment = Cost × Accumulated depreciation rate
= $287,600 × (0.20 + 0.32)
= $149,552
Book value of equipment at the end of 2 years = Cost - Accumulated Depreciation of equipment
= $287,600 - $149,552
= $138,048
Selling price = $150,000
Capital gain on sale = Selling price - Book value
= $150,000 - $138,048
= $11,952
And Tax rate = 21%
So
Capital gain tax is
= $11,952 × 21%
= $2,509.92
= $2,510
Net salvage value = Selling price - Capital gain tax
= $150,000 - $2,510
= $147,490