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22 October, 20:53

Given the following information, what is the value of Depreciation and Amortization Expense?

Revenue = $100,000 | Cost of Goods Sold = $10,000 | Gross Profit = ? | Selling General & Administrative Expenses = $20,000 | Research and Development Expense = $5,000| Depreciation and Amortization Expense = ? | Operating Income = $62,000 | Income Tax Provision = $18,600| Net Income = ?

A) $90,000

B) $43,400

C) $3,000

D) $62,000

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Answers (1)
  1. 22 October, 23:31
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    B) $43,400

    Explanation:

    The computation of the net income is shown below:

    Revenue $100,000

    Less: Cost of goods sold $10,000

    Gross profit $90,000

    Less: Selling General & Administrative Expenses $20,000

    Less: Research and Development Expense$5,000

    Less: Depreciation and Amortization Expense $3,000

    Operating income $62,000

    Less: Income tax provision - $18,600

    Net income $43,400
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