20-30

Use the following to answer questions 20-22 AGM Construction is in the process of closing its operations. It sold its seven-year-old Caterpillar 279C Compact Track Loader for $56,500. The loader originally cost $125,000 and had an estimated useful life of 10 years and an estimated residual value of $25,000. The company uses straight-line depreciation for all equipment. 20. Calculate the book value of the loader at the end of the seventh year. 21. $ What was the gain or loss on the sale of the loader at the end of the seventh year; (if loss, put - in front of your answer). 22. Record the sale of the loader at the end of the seventh year. Continued on the next page Use the following to answer questions 23 - 30 JR Corp. reported the following income statement results: 23. s 24. S Calculate Net sales Calculate Cost of Goods Sold Calculate operating income Calculate Income before Income tax 25. S 26, S (IBT) 27. S Calculate income tax expense 28 % Calculate the gross profit margin (one decimal place) 28. %. Calculate the gross profit margin (one decimal place) 29. %. Calculate the net profit margin (one decimal place) 30. $ Assume the company had a loss on the sale of equipment of $10,000 instead of a gain; determine IBT. Continued on the next pageUse the following to answer questions 23 - 30 JR Corp. reported the following income statement results: Sales $998,200 Sales returns & allowances 18,200 Gross profit 390,040 Operating expense 294,700 Gain on sale of equipment 15,000 Net income 84,280