Useful Organizing Began Operations on January 1,20X3,when the Owners Invested

question 2

Multiple Choice

Useful Organizing began operations on January 1,20X3,when the owners invested $80,000 cash in the company.Also on January 1,the company paid for a $30,000 machine.The machine has a useful life of 4 years and a $2,000 residual value.During its first year of operations,the company had sales of $96,000 and operating expenses except depreciation of $67,000.All sales were cash sales and all non-depreciation operating expenses were paid in cash.Useful Organizing has a 30% tax rate and pays all taxes on December 31.What is the cash balance after taxes on December 31,20X3,if Useful Organizing uses straight-line depreciation?

• A)$55,300
• B)$72,400
• C)$72,550
• D)$94,050
• E)$94,400

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Definitions:

Triangulation

A method used in research to cross-validate data through the use of multiple data sources, methods, investigators, or theories.

Garbology

The study of a community or culture by analyzing its waste to understand its habits and behaviors.

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Observing subjects without their knowledge for research or information-gathering purposes.

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