Answer:
$3,642.50
Explanation:
For computing the average annual amount of net income (loss), first we have to compute the net income which is shown below:
The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid
$9,700 = $0 + Net income - ($2,420 + $0 + $1,440 + $1,010)
$9,700 = $0 + Net income - $4,870
So, the net income is
= $9,700 + $4,870
= $14,570
Now the average annual amount of net income is
= 
= 
= $3,642.50
Answer:
The depreciation expense to be recognized for 2019 is $54,400
Explanation:
The company uses straight-line depreciation method, Depreciation Expense each year is calculated by following formula:
Annual Depreciation Expense = (Cost of equipment − Salvage Value )/Useful Life
The high tech equipment was purchased at a cost of $320,000 and has estimated useful life of 5 years, the salvage value of $48,000.
Annual Depreciation Expense = ($320,000 - $48,000)/5 = $54,400
Newman Co. purchased the equipment in January 2019.
The depreciation expense to be recognized for 2019 is $54,400
Answer:
35,000 units
Explanation:
Data provided in the question:
Selling price = $2.00 per pair
Variable cost per unit = $1.70
Mason's total fixed costs = $10,500
Now,
Break even in units = ( Fixed cost ) ÷ ( Contribution per unit )
Also,
Contribution per unit = Selling price per unit - Variable cost per unit
= $2.00 - $1.70
= $0.30
thus,
Break even in units = $10,500 ÷ $0.30
= 35,000 units
