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

question 29

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 before taxes on December 31,20X3,if Useful Organizing uses double-declining- balance depreciation?

• A)$64,000
• B)$74,500
• C)$79,000
• D)$83,500
• E)$94,000

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