The Aztec Book Company sold 1,400 finance textbooks to High Tuition College for $84 each in 2015.
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The Aztec Book Company sold 1,400 finance textbooks to High Tuition College for $84 each in 2015. These books cost $63 to produce. In addition, Aztec Books spent $2,000 (selling expense) to persuade the college to buy its books. Aztec Books borrowed $50,000 on January 1, 2015, on which it paid 10 percent interest. Both interest and principal were paid on December 31, 2015. Aztec Books' tax rate is 20 percent. Amortization expense for the year was $5,000. Did Aztec Books make a profit in 2015?Verify your answer with an income statement presented in good form.
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Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
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