Income Statement You Have Been Given the Following Information for Romeo's

question 37

Multiple Choice

Income Statement You have been given the following information for Romeo's Rockers Corp.: net sales = $5,200,000;
Cost of goods sold = $2,100,000;
Addition to retained earnings = $1,000,000;
Dividends paid to preferred and common stockholders = $400,000;
Interest expense = $200,000.
The firm's tax rate is 30 percent. What is the depreciation expense for Romeo's Rockers Corp.?

• A) $900,000
• B) $1,100,000
• C) $1,500,000
• D) $1,600,000

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