Jerry was working as a veternarian, and he earned an annual income of $135,000. He had savings of $86,000 in the bank, which was earning 3% interest per year. Then he decided to quit and start his own landscaping business. He used his $86,000 savings to purchase a truck and equipment. The values for his first year with his new business were: Revenue 265,000 Wages for employees 108,000 Insurance 2990 Depreciation 1920 Gasoline and vehicle 6125 maintenance Calculate Jerry's accounting profit for his first year. Answer:
Jerry was working as a veternarian, and he earned an annual income of $135,000. He had savings of $86,000 in the bank, which was earning 3% interest per year. Then he decided to quit and start his own landscaping business. He used his $86,000 savings to purchase a truck and equipment. The values for his first year with his new business were: Revenue 265,000 Wages for employees 108,000 Insurance 2990 Depreciation 1920 Gasoline and vehicle 6125 maintenance Calculate Jerry's accounting profit for his first year. Answer:
Chapter13: Choice Of Business Entity—general Tax And Nontax Factors/formation
Section: Chapter Questions
Problem 65IIP
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![Jerry was working as a veternarian, and he earned an annual income of $135,000.
He had savings of $86,000 in the bank, which was earning 3% interest per year.
Then he decided to quit and start his own landscaping business.
He used his $86,000 savings to purchase a truck and equipment.
The values for his first year with his new business were:
Revenue
265,000
Wages for employees
108,000
Insurance
2990
Depreciation
1920
Gasoline and vehicle
6125
maintenance
Calculate Jerry's accounting profit for his first year.
Answer:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F54116caa-f22b-40fd-ac71-cd149350f749%2F575a9a9b-15e2-49de-9004-46dacc36d2d3%2Fc57tqht_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Jerry was working as a veternarian, and he earned an annual income of $135,000.
He had savings of $86,000 in the bank, which was earning 3% interest per year.
Then he decided to quit and start his own landscaping business.
He used his $86,000 savings to purchase a truck and equipment.
The values for his first year with his new business were:
Revenue
265,000
Wages for employees
108,000
Insurance
2990
Depreciation
1920
Gasoline and vehicle
6125
maintenance
Calculate Jerry's accounting profit for his first year.
Answer:
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