[The Following Information Applies to the Questions Displayed Below

question 104

Multiple Choice

[The following information applies to the questions displayed below.]

On January 1, Year 1, Jing 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.The company uses the straight-line method.The office equipment was sold on December 31,Year 3 for $16,000.What is the company's net income (loss) for Year 3?

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

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Definitions:

SWOT Analysis

A strategic planning tool that assesses the Strengths, Weaknesses, Opportunities, and Threats related to a business or project.

External Consideration

The evaluation of external factors or circumstances that might affect decisions, actions, or outcomes.

Positioning Activities

Marketing efforts aimed at shaping the perception of a product or brand in the target market's mind, relative to the competition.

Target Market

A specific group of potential consumers at whom a company aims its products and services.