You Have Been Given the Following Information for Nicole's Neckties

question 10

Multiple Choice

You have been given the following information for Nicole's Neckties Corp.: Net sales = $2,500,000; Cost of goods sold = $1,300,000; Addition to retained earnings = $30,000; Dividends paid to preferred and common stockholders = $300,000; Interest expense = $50,000. The firm's tax rate is 40 percent. What is the depreciation expense for Nicole's Neckties Corp.?

• A) $550,000
• B) $600,000
• C) $650,000
• D) $820,000

---

Definitions:

Gram-positive

Relating to a group of bacteria that retain the crystal violet stain used during the Gram staining method of bacterial differentiation, appearing purple under a microscope.

Gram-variable

Pertaining to bacteria that do not consistently stain either as Gram-positive or Gram-negative because of their cell wall composition variations.

Opaqueness

The quality of being difficult to see through or understand, often used to describe materials that are not transparent or clear communications.

Decant

The process of gently pouring liquid from one container to another to separate it from sediment or other particles at the bottom.