Bobby's sandwiches started business by acquiring $24700 cash from the issue of common stock on January 1 year 1 .The cash acquired was immediately used to purchase equipment for $24700 that had a $3900 salvage value and an expected useful life of four years. The equipment was used to produce the following revenue stream (assume that all revenue transactions are for cash) . At the beginning of the fifth year the equipment was sold for $4480 cash. Bobby uses straight line depreciation Revenue:- Year 1 -$7960 Year 2 -$8460 Year 3 -$8660 Year 4 -$7460 Year 5 - $0 Required Prepare income statements, statements of changes in stockholder's equity, balance sheets and statements of cash flows for each of the five years . Present the statements in the form of a vertical statements model

Bobby's sandwiches started business by acquiring $24700 cash from the issue of common stock on January 1 year 1 .The cash acquired was immediately used to purchase equipment for $24700 that had a $3900 salvage value and an expected useful life of four years. The equipment was used to produce the following revenue stream (assume that all revenue transactions are for cash) . At the beginning of the fifth year the equipment was sold for $4480 cash. Bobby uses straight line depreciation Revenue:- Year 1 -$7960 Year 2 -$8460 Year 3 -$8660 Year 4 -$7460 Year 5 - $0 Required Prepare income statements, statements of changes in stockholder's equity, balance sheets and statements of cash flows for each of the five years . Present the statements in the form of a vertical statements model

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter11: Property Dispositions

Section: Chapter Questions

Problem 80IIP

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