Jing Company was started on January 1, 2016 when it issued common stock for $27,000 cash. Also, on January 1, 2016 the company purchased office equipment that cost $15,100 cash. The equipment was delivered under terms FOB shipping point, and transportation cost was $1,200. The equipment had a five-year useful life and a $5,600 expected salvage value.

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 statement

Assume that Jing Company earned $16,600 cash revenue and incurred $10,500 in cash expenses in 2018. Using straight-line depreciation and assuming that the office equipment was sold on December 31, 2018 for $8,500, the amount of net income or (loss) appearing on the December 31, 2018 income statement would be: