Question
For the year ending December 31, 2020, the Income Statement of The company., prepared in accordance with generally accepted accounting principles, is as follows: Revenues
For the year ending December 31, 2020, the Income Statement of The company., prepared in accordance with generally accepted accounting principles, is as follows:
Revenues $974,000
Expenses:
Cost Of Goods Sold ($272,000)
Selling And Administrative Costs ( 132,000)
Amortization Expense ( 156,000)
Other Expenses ( 137,000)
( 697,000)
Income Before Tax Expense $277,000
Income Tax Expense: Current ($ 97,000) Future ( 32,000)
( 129,000)
Net Income $148,000
d) Class 13 68,000
The Class 13 balance relates to a single lease that commenced on January 1, 2018. The lease has an initial term of seven years, with two successive options to renew for three years each. Expenditures on this leasehold were $50,000 in 2018 and $27,000 in 2019. There were no further expenditures in 2020. The write-off of these expenditures for accounting purposes is included in Amortization Expense.
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