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Question - Cash flows during the first year of operations for the Harman-Kardon Consulting Company were as follows: Cash collected from customers, $375,000; Cash paid for rent, $47,000; Cash paid to employees for services rendered during the year, $127,000; Cash paid for utilities, $57,000.
In addition, you determine that customers owed the company $67,000 at the end of the year and no bad debts were anticipated. Also, the company owed the gas and electric company $2,700 at year-end, and the rent payment was for a two-year period.
Calculate accrual net income for the year.
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Assuming that Beech Corporation does not elect to expense but chooses to amortize organizational-expenditures over 15 years, calculate the corporation's deduction for its calendar tax year 2010.
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