Please Refer to the Worksheet Below How Much Was the Profit?
A)$13 600
B)$42 000
C)$22

question 16

Multiple Choice

Please refer to the worksheet below. $\begin{array}{|l|c|c|c|c|c|c|c|c|c|c|}\hline &\text { Trial Balance }&&\text { Adjustments }&&\text { Adjusted Trial balance}&&\text { Income statement }&&\text { Balance sheet }\\\hline \text { Account Title } & \text { Dr. } & \text { Cr. } & \text { Dr. } & \text { Cr. } & \text { Dr. } & \text { Cr. } & \text { Dr. } & \text { Cr. } & \text { Dr. } & \text { Cr. } \\\hline \text { Cash } & \$ 1700 & & & & \$ 1700 & & & & \$ 1700 & \\\hline \text { Accounts receivable } & 8500 & & 52000 & & 10500 & & & & 10500 \\\hline \text { Supplies } & 100 & & & 500 & 20 & & & & 20 \\\hline \text { Equipment } & 7500 & & & & 7500 & & & & 7500 \\\hline \begin{array}{l}\text { Accumulated } \\\text { Depreciation }\end{array} & & \$ 2000 & & 240 & & \$ 2240 & & & & \$ 2240 \\\hline \text { Accounts payable } & & 1200 & & & & 1200&&&&1200 \\\hline \text { Salary payable } & & 800 & & 180 & & 980&&&&980 \\\hline \text { Unearned revenue } & & 600 & & & & 600 &&&&600\\\hline \text { Capital } & & 3400 & & & & 3400 &&&&3400\\\hline \text { Drawings } & 2300 & & & & 2300 & & & & 2300 \\\hline \text { Service revenue } & & 40000 & & 2000 & & 42000 & & 42000 & \\\hline \text { Salary expense } & 24000 & & 100 & & 24100&&24180 \\\hline \text { Supplies expense } & 2300 & & 80 & & 2300&&2380 \\\hline \begin{array}{l}\text { Depreciation } \\\text { expense }\end{array} & 1600 & & 240 & & 1840 & & 1840 \\\hline& \$ 48000 & \$ 48000 & \$ 2500 & \$ 2500 & \$ 50420 & \$ 50420 & \$ 28400 & \$ 42000 & \$ 22020 & \$ 8420 \\\hline&&&&&&& \underline{13600} & & & \underline{13600} \\\hline&&&&&&& \$ 42000 & \$ 42000 & \$ 22020 & \$ 22020 \\\hline\end{array}$ How much was the Profit?

• A)$13 600
• B)$42 000
• C)$22 020
• D)$28 400

---

Definitions:

Involuntary Conversion

A process where an asset or property is replaced or converted into a similar asset or payment, often due to theft, destruction, or condemnation, without the owner's consent.

Like-kind Exchange

A tax deferment on the exchange of real property used for business or investment for another property of like kind.

Boot Received

Cash or other property added to a transaction to even out the exchange, which can have tax implications for the recipient.

Computer Equipment

Tangible assets including computers, servers, and other technology-related hardware used in the operation of a business or for personal use, subject to depreciation.