Question
Chippawa Industries acquired a delivery truck on January 4, 2010. The total cost of the truck was $145,000. Chippawa estimated that the truck would be
Chippawa Industries acquired a delivery truck on January 4, 2010. The total cost of the truck was $145,000. Chippawa estimated that the truck would be used for 8 years before being sold for an estimated $23,500. Chippawa uses the double-declining balance method of depreciation. The total depreciation expense for the year ended December 31, 2010 was:
18,125
15,188
30,375
36,250
Hunter Corporation beginning of year retained earnings balance was $28,300. The corporation declared and paid dividends of $19,400 during the year and ended the year with a $36,500 balance. The net income or loss for the year was:
(11,200) | ||
8,200 | ||
27,600 | ||
17,100 |
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