Depreciation on plant assets 45500 177900

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Depreciation on plant assets 45,500 177,900 Administrative expenses Wages and salaries 135,900 Depreciation on plant assets 19,500 385,000 Other administrative expenses 51,700 207,100 Income from operations 79,000 Other revenues and gains Rental Revenue 29,000 Market appreciation on land above cost 31,000 Cash dividends declared 16,000 76,000 155,000 Other expenses and losses Interest expenses 18,000 Income before income tax 137,000 Income tax 30,600 Net income for the year $106,400 b. ALLEN AND WRIGHT INCOME STATEMENT For the Year Ended December 31, 2010 Revnues Sales $980,000 Rental revenue 29,000 Market appreciation on land above 31,000 Cash dividends declared 16,000 Total revenues 1,056,000 Expenses Cost of goods sold 516,000 Selling expenses 177,900 Administrative expenses 207,100 Interest expenses 18,000 Income tax expenses 30,600 Total expenses 949,600 Net income $106,400
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a. Cash $50,000 Administrative expenses -$100,000 Selling expenses -$80,000 Net sales $540,000 Cost of goods sold -$260,000 Cash dividends declared $20,000 Cash dividends paid -$15,000 Discontinued operations (loss before income taxes) -$40,000 Depreciation expenses, not recorded in 2009 -$30,000 Retained earnings, December 31, 2009 $90,000 Net Income before taxes $175,000 Effective tax rate 30% 30% x 175,000 $52,500 Net Income $122,500
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