3. Identify the primary term described by each event below: gross income, depreciation, operating expense, taxable...

3. Identify the primary term described by each event below: gross income, depreciation, operating expense, taxable income, income tax, or net operating profit after taxes.

a) A new machine had a first-year write-off of $10,500.

b) A public corporation estimates that it will report a $?750,000 net profit on its

annual income statement.

c) An asset with a book value of $8000 was retired and sold for $8450.

d) An over-the-counter software system will generate $420,000 in revenue this

quarter.

e) An asset with a MACRS recovery period of 7 years has been owned for 10

years. It was just sold for $2750.

f) The cost of goods sold in the past year was $3,680,200.

g) A convenience store collected $33,550 in lottery ticket sales last month. Based

on winners holding these tickets, a rebate of $350 was sent to the manager.

h) An asset with a first cost of $65,000 was utilized on a new product line to

increase sales by $150,000.

i) The cost to maintain equipment during the past year was $641,000

Solutions

Expert Solution

a) A new machine had a first-year write-off of $10,500.	Depreciation
b) A public corporation estimates that it will report a $?750,000 net profit on its annual income statement.	Net operating profit after taxes
c) An asset with a book value of $8000 was retired and sold for $8450.	Taxable Income
d) An over-the-counter software system will generate $420,000 in revenue this quarter.	Gross Income
e) An asset with a MACRS recovery period of 7 years has been owned for 10 years. It was just sold for $2750.	Taxable Income
f) The cost of goods sold in the past year was $3,680,200.	Operating expense
g) A convenience store collected $33,550 in lottery ticket sales last month. Based on winners holding these tickets, a rebate of $350 was sent to the manager.	Taxable Income
h) An asset with a first cost of $65,000 was utilized on a new product line to increase sales by $150,000.	Gross Income
i) The cost to maintain equipment during the past year was $641,000	Operating expense

ekkarill92 answered 1 year ago

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