Question

Given the following information, what is the value of Depreciation and Amortization Expense?

Revenue = $100,000 | Cost of Goods Sold = $10,000 | Gross Profit = ? | Selling General & Administrative Expenses = $20,000 | Research and Development Expense = $5,000| Depreciation and Amortization Expense = ? | Operating Income = $62,000 | Income Tax Provision = $18,600| Net Income = ?
A) $90,000
B) $43,400
C) $3,000
D) $62,000

Answer 1

B) $43,400

Step-by-step explanation:

The computation of the net income is shown below:

Revenue $100,000

Less: Cost of goods sold $10,000

Gross profit $90,000

Less: Selling General & Administrative Expenses $20,000

Less: Research and Development Expense$5,000

Less: Depreciation and Amortization Expense $3,000

Operating income $62,000

Less: Income tax provision -$18,600

Net income $43,400