Hamlet Ltd

question 57

Multiple Choice

Hamlet Ltd. adheres to ASPE. On Hamlet Ltd.'s statement of cash flows (indirect method) for calendar 2020, cash flows from operating activities were reported at $ 154,000. The statement included the following items: depreciation on plant assets of $ 60,000; impairment of goodwill of $ 10,000; and cash dividends paid of $ 72,000. Based only on the information given above, Hamlet's net income for 2020 was

• A) $ 12,000.
• B) $ 84,000.
• C) $ 154,000.
• D) $ 214,000.

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Definitions:

Prevention Cost

Costs incurred to prevent defects in products or services, part of quality control measures.

Quality Training

The process of instructing employees on the standards and procedures necessary to ensure that products or services meet quality expectations.

Debugging Software Errors

The process of identifying, analyzing, and fixing bugs or errors in software code to ensure the program runs correctly and efficiently.

Appraisal Cost

Expenses incurred to detect defective products or services before they are delivered to customers, part of quality control efforts.