Allocating depreciation and amortization

Assignment Help Corporate Finance

Reference no: EM1346444

Jake Smith opened his Balinese coffee shop business in downtown Boise on January 1st 2010. On December 31st, 2010, he sat down with his accountant to figure out how his business had done in its first year and heaved a sigh of relief when his accountant reported that his EBT came to $20,000. Revenues, at $1,050,000 looked good. His expenses were as follows:

Salaries and benefits paid to employees $210,000
Jake's own salary $100,000
Supplies (coffee, tea, milk, pastries, etc.) $620,000
Cost of Restaurant grade coffee machine $30,000
Miscellaneous operating costs $44,000
Interest on loan $12,000

How much did Jake's accountant allocate for depreciation and amortization?
a.) $44,000
b.) $14,000
c.) $4,000
d.) $0.00

Reference no: EM1346444

Questions Cloud

Illustrate tax placed on buyers of airline tickets shifts : A tax placed on buyers of airline tickets shifts the

Settlement agreement upon divorce : settlement agreement upon her divorce from her husband, Wes Palermo. Wes, in Lisa's absence in court, stated that she had had lucid intervals from her alcoholism

Directive versus persuasive writing : When you come to work on time, you will work more efficiently the rest of the day and you'll feel more relaxed."

What is the resistance of an original length of wire : A 200 km long high-voltage transmission line 2 cm in diameter carries a steady current of 1050 A. If the conductor is copper with a free charge density of 8.8 x10^28 electrons per cubic meter, how various years does it take one electron to travel ..

Allocating depreciation and amortization : Jake Smith opened his Balinese new coffee shop business in downtown Boise on January first 2010. On December 31st, 2010, he sat down with his accountant to find out how his new business had done in its 1st year.

Policy between montgomery and manning : Did Montgomery and Manning form a valid contract? Would your answer be different if the cancellation clause had been in every policy between Montgomery and Manning, or if this were the first time there was such a clause?

What is the time of oscillation of the fish : Two identical positive charges exert a repulsive force of 7.4 x10-9 N when separated by a distance of 4.8 10-10 m. compute the charge of each.

Job evaluation at whole foods case study : Job Evaluation at Whole Foods Case Study. The Whole Foods Market has completed a job analysis as well as written job descriptions for Jobs A thorough Job I.

What has been happening in florida in general : What has been happening in Florida in general in terms of unemployment over this time period. What about for GDP.

User Account

All Pages