Question

In: Accounting

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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