Answer:
Depreciation Expense=$7800
Explanation:
Step 1:
Calculate Net Income:
Net Income=Retained Earnings + Dividends
Net Income=$6250+$2200
Net Income=$8450
Step 2:
Calculate earnings before tax:
Earnings before tax=Net Income/(1-Tax Rate)
Earnings before tax=$8450/(1-0.35)
Earnings before tax=$13000
Step 3:
Depreciation Expense=Sales-Costs-Interest expense-Earnings before tax
Depreciation Expense=$48,000- $22,400-$4,800-$13000
Depreciation Expense=$7800
Answer:
T must pay income taxes for the $3,000 he receives.
Explanation:
If the beneficiary of the disability benefits paid the premiums, then the money received is tax free. On the other hand, if the premiums were paid by someone else (in this case his employer), then the benefits will be taxed as normal income.
Answer: $18,280
Explanation:
Ending inventory for fabricating department = Beginning Work in Process + Direct materials + Direct labor + Factory overhead - Inventory transferred out of department
= 11,600 + 77,600 + 25,600 + (80% * 25,600) - 117,000
= 11,600 + 77,600 + 25,600 + 20,480 - 117,000
= $18,280
Net profit is more important to consider because even if your net profit is 0, your company is still a success.