Line of underground condos had sales

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One of my favorite companies, Caskets-R-Us, famous for its line of "underground condos" had sales of $1,000,000. The cost of the caskets (they import them from China) was $220,000 and the labor costs (they arrive in kit form) was $400,000. Sometime after 1 July, they purchased a machine for $150,000 to make simulated brass handles. The equipment has a MACRS life expectancy of 5 years They received a $30,000 dividend check from stock the company owns in Apple, Inc and $5,000 in interest from CD's they own. The company did not pay any common dividends but did pay $10,000 in preferred stock dividends for the current year and $20,000 in preferred dividends from the previous two years (the preferred stock is cumulative). Lastly, they sold $100,000 in bonds five years ago (20 year maturity) that carried an 8% coupon. Given this information: a. what was the depreciation expense for this year and what will it be next year and b. what is their net income for this year?

Reference no: EM13907224

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Line of underground condos had sales : One of my favorite companies, Caskets-R-Us, famous for its line of "underground condos" had sales of $1,000,000. The cost of the caskets (they import them from China) was $220,000 and the labor costs (they arrive in kit form) was $400,000. what was t..

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