During 2018, Dragon Company determined, based on new information, that equipment previously depreciated using a ten-year life and a salvage value of $100,000 had a total estimated life of only six years and a salvage value of $50,000. The equipment was acquired on January 1, 2016 at a cost of $600,000, and was depreciated using the straight-line method. Dragon made an accounting change in 2018 to
reflect this additional information, and the change was approved by the IRS. Dragon has an income tax rate of 30%. Dragon's income before depreciation, before income taxes, and before any retroactive effect of the accounting change (if any) for the year ended December 31, 2018, was $180,000. What is the amount of Dragon's net income for 2018?
A) $80,000
B) $67,500
C) $56,000
D) $47,250
D
You might also like to view...
Based on the above data, what is the quick ratio, rounded to one decimal point?
a. 2.7 b. 2.6 c. 1.7 d. 0.9
The spread between the resistance points, called the bargaining range, settlement range, or zone of potential agreement, is particularly important.
Answer the following statement true (T) or false (F)
Until a state assumes partial or complete responsibility for a Resource Conservation and Recovery Act (RCRA) program, the federal government administers the program.
Answer the following statement true (T) or false (F)
A cooperative business arrangement between two or more companies may be a: A) partnership
B) joint venture. C) corporation. D) all of the above.