Jing Company Was Started on January 1, Year 1 When

question 21

Multiple Choice

Jing Company was started on January 1, Year 1 when it issued common stock for $50,000 cash. Also, on January 1, Year 1 the company purchased office equipment that cost $34,000 cash. The equipment was delivered under terms FOB shipping point, and transportation cost was $2,000. The equipment had a five-year useful life and a $12,000 expected salvage value.Assume that Jing Company earned $30,000 cash revenue and incurred $19,000 in cash expenses in Year 3. Using straight-line depreciation and assuming that the office equipment was sold on December 31, Year 3 for $16,000, the amount of net income or (loss) appearing on the December 31, Year 3 income statement would be:

• A) ($6,600).
• B) $6,600.
• C) $600.
• D) $5,400.

---

Definitions:

Intuitive Interpreting

The ability to understand or know something without the need for conscious reasoning, often used in the context of quickly grasping complex information.

Experiential Interpreting

The process of making sense of experiences through reflection, often used in educational settings to enhance learning.

Interprofessional Team

A group of healthcare workers from different professional backgrounds working together to deliver comprehensive care to patients.

Competence Assessment

The evaluation of an individual's abilities and skills to ensure they meet certain standards or can perform specific tasks effectively.