Problem 2:
The following events apply to Sam’s Seafood Restaurant for the year ended December 31, 2020, its first year of operations:
Required: Answer the following questions.
a) Net income = Revenue-Expense
Depreciation expense = (35000-3000/4) = 8000
Net income = 36000-12000-8000 = $16000
b) Depreciation expense = (35000-3000/4) = $8000
c) Accumulated depreciation = 8000*2 = $16000
d) Depreciation expense is non Cash expense so Cash flow from operating activities would not be affected by Depreciation
e) Gain (loss) = Sale value-Book value = 10000-(35000-8000*3) = -1000
Problem 2: The following events apply to Sam’s Seafood Restaurant for the year ended December 31,...
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