Question
Jing Company was started on January 1, 2016 when it issued common stock for $38,000 cash. Also, on January 1, 2016 the company purchased office
Jing Company was started on January 1, 2016 when it issued common stock for $38,000 cash. Also, on January 1, 2016 the company purchased office equipment that cost $16,200 cash. The equipment was delivered under terms FOB shipping point, and transportation cost was $2,300. The equipment had a five-year useful life and a $6,000 expected salvage value. |
3.
Required information
Using double-declining balance depreciation, determine the amount of depreciation expense and the amount of accumulated depreciation that would appear on the December 31, 2018 financial statements. |
$0/$16,800.
$6,192/$16,512.
$660/$12,500.
$3,715/$20,515.
4.
Required information
Assume that Jing Company earned $25,400 cash revenue and incurred $16,000 in cash expenses in 2018. Using straight-line depreciation and assuming that the office equipment was sold on December 31, 2018 for $9,900, the amount of net income or (loss) appearing on the December 31, 2018 income statement would be: |
($2,220).
$5,800.
$3,420.
$5,580.
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