Assume that Jing Company earned $29,400 cash revenue and incurred $18,500 in cash expenses in Year 3. The company uses the straight-line method. The office equipment was sold on December 31, Year 3 for $10,400. What is the company's net income (loss) for Year 3?

Question

Darryl Yates

Business

21 September, 13:35

Assume that Jing Company earned $29,400 cash revenue and incurred $18,500 in cash expenses in Year 3. The company uses the straight-line method. The office equipment was sold on December 31, Year 3 for $10,400. What is the company's net income (loss) for Year 3?

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Braelyn Rush · Answer 1

In every single company, the main aim of installing an office equipment is to make profit. After the office equipment made a revenue of $29400, Jing Company incurred expenses of $18500. The value of the equipment was $29400 - $18500 = $10900. It was sold for $10400 meaning that the net income of the equipment was $10400-$10900 = - $500. Therefore, it will incur a net loss of $500.