Compute the Net Income for 2018 Based on the Following

question 23

Essay

Compute the net income for 2018 based on the following amounts presented on the adjusted trial balance of D-Lay Company. $\begin{array}{lr}\text { Accumulated Depreciation - Equip. } & \$ 20,000 \\\text { Depreciation Expense } & 18,000 \\\text { Salaries and Wages Expense } & 15,000 \\\text { Service Revenue } & 40,000 \\\text { Unearned Service Revenue } & 8,000\end{array}$

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Definitions:

Entity Approach

A method in consolidated financial statements where the economic activities of a parent company and its subsidiaries are treated as a single economic entity.

Goodwill

An intangible asset originating from the acquisition of one company by another for a premium on the value, representing the reputation, brand, or other competitive advantages of the company.

Non-Controlling Interest

An ownership interest in a corporation where the stake does not grant the holder the control over the company's operations and policies.

Buildings And Equipment

Long-term tangible assets owned by a business for use in the production or supply of goods and services, for rental to others, or for administrative purposes.