Barkin Corporation's Accounting Records Include the Following Items for the Year

question 59

Essay

Barkin Corporation's accounting records include the following items for the year ending December 31,2017:
$$\begin{array} { l l l } \text { Gain on Sale of Equipment } & \$ 12,000 & \text { Gain on } \\\text { Discontinued Operations } & \$ 75,000 & \\\text { Loss on Disposal of Equipment } & 5,000 & \text { Extraordinary } \\\text { Loss } & 15,000 & \\\text { Net Sales } & 650,000 & \text { Cost of Coods } \\\text { Sold } & 285,000 & \\&\text {Operating Expenses}&120,000\end{array}$$ The income tax rate for the company is 25%.Prepare Barkin's income statement for the year ended December 31,2017.Omit earnings per share.

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Definitions:

Shipping Costs

Expenses associated with transporting goods from one location to another, often considered part of the cost of sales or inventory.

Sales Tax

A mandatory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund various public expenditures. In this context, it specifically refers to a tax on sales of goods and services.

Ordinary Repairs

Expenditures to maintain an asset in its normal operating condition without significantly extending its useful life or altering its capacity.

Double-declining-balance Method

An accelerated method of depreciation that counts as an expense twice the straight-line depreciation rate for the declining book value of the asset each year.