Jing Company was started on January 1, 2016 when it issued common stock for $41,000 cash. Also,

Question:

Jing Company was started on January 1, 2016 when it issued for $41,000 cash. Also, on January 1, 2016 the company purchased office equipment that cost $18,100 cash. The equipment was delivered under terms FOB shipping point, and transportation cost was $2,600. The equipment had a five-year useful life and a $6,600 expected .
3. Using double-declining balance depreciation, determine the amount of depreciation expense and the amount of accumulated depreciation that would appear on the December 31, 2018 financial statements.
$0 / $18,100.
$6,624 / $17,664.
$852 / $14,100.
$3,974 / $22,074.
4. Assume that Jing Company earned $27,800 cash revenue and incurred $17,500 in cash expenses in 2018. Using straight-line depreciation and assuming that the office equipment was sold on December 31, 2018 for $10,200, the amount of net income or (loss) appearing on the December 31, 2018 income statement would be:
($2,740).
$5,440.
$3,140.
$6,360.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...