You Have Been Given the Following Information for Corky's Bedding

question 16

Multiple Choice

You have been given the following information for Corky's Bedding Corp.: Net sales = $15,250,000; Cost of goods sold = $5,750,000; Addition to retained earnings = $4,000,000; Dividends paid to preferred and common stockholders = $995,000; Interest expense = $1,150,000.The firm's tax rate is 30 percent.Calculate the depreciation expense for Corky's Bedding Corp.

• A) $1,970,842.88
• B) $1,214,285.71
• C) $1,521,989.23
• D) $1,663,139.36

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Definitions:

Conglomeration

The process by which a single corporation acquires ownership of a variety of otherwise unrelated businesses.

Alcoholic Beverages

Alcoholic Beverages are drinks containing ethanol, commonly known as alcohol, including beer, wine, and spirits, which are consumed globally in various social and cultural settings.

Free Time

Periods when individuals are not engaged in compulsory activities like work or essential domestic tasks, allowing for relaxation or leisure activities.

Leisure Time

Periods when individuals are not engaged in work or essential activities, allowing for rest, recreation, or personal interests.