The Company Reported the Following Items on Its Financial Statements

question 88

Multiple Choice

The company reported the following items on its financial statements for the year ended December 31, 2019:

-Refer to Bay Camera. What is the company's Net Income for the current year?

• A)$22,500
• B)$32,500
• C)$42,500
• D)$80,000

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Definitions:

Tangible Assets

Assets that have a physical form such as machinery, buildings, and land.

Intangible Assets

Assets that have special rights but not physical substance

Physical Substance

A characteristic of an asset that consists of material existence; tangible assets that can be seen, touched, or quantified.

Depletion

Systematic and rational allocation of the cost of a natural resource over the period of its exploitation