Question

Determine the taxable income for a firm as described here: The firm recorded revenues of $46,000 and recaptured depreciation of $2,000 for the year just ended During the year, the firm incurred cash expenses of $27,500 and depreciation expenses of $15,575.

Answer 1

Taxable Income = $4,925

Step-by-step explanation:

Computation of taxable income

Particulars Amount

Revenue $46,000

Add: Recaptured depreciation $2,000

Less: Cash expenses $27,500

Less: Depreciation expenses $15,575

Taxable Income $4,925