taxable income (loss) -2,900,000

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter7: Operating Assets
Section: Chapter Questions
Problem 4MCQ
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XYZ corp started business on 1/1/2020
XYZ corp has the following financial information for 2020
revenues
6,000,000
COGS (lifo)
3,400,000
rent expense
2,000,000
depreciation (declining method)
2,000,000
other expenses
1,500,000
taxable income (loss)
-2,900,000
additional information
if fifo was used, COGS
1,020,000
if straight-line depreciation was used, depreciation expense
800,000
other expenses include the purchase of small equipments
1,000,000
distribution made to shareholders on june 15, 2020
1,280,000
calculate the amount of earnings and profit for XYZ as of 12/31/2020
Transcribed Image Text:XYZ corp started business on 1/1/2020 XYZ corp has the following financial information for 2020 revenues 6,000,000 COGS (lifo) 3,400,000 rent expense 2,000,000 depreciation (declining method) 2,000,000 other expenses 1,500,000 taxable income (loss) -2,900,000 additional information if fifo was used, COGS 1,020,000 if straight-line depreciation was used, depreciation expense 800,000 other expenses include the purchase of small equipments 1,000,000 distribution made to shareholders on june 15, 2020 1,280,000 calculate the amount of earnings and profit for XYZ as of 12/31/2020
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