Hundred reported the following transactions in the first two quarters of 2021: · Dividends of 300,000 were received on February 14. · Rent of 150,000, which is for a ten-month period starting March 1, was paid in May 1 · Equipment with a carrying amount of 400,000 on January 1 was classified as held for sale on January 12. Impairment gain of 100,000 resulted from this transaction. · Advertising costs of 240,000 was paid in February 23. This would cover advertising and marketing campaigns of the company for 15 months starting February 1, 2021. · Annual sales are estimated to amount 15 million. Sales for the first quarter is 3 million while sales for the second quarter was 4.8 million · Costs of sales in the first quarter and the second quarter amounts to 1.5 million and 3 million respectively. · Annual salaries are estimated at 1 million · Other operating expenses for the first and the second quarters were 200,000 and 350,000 respectively. Determine the net income in the first quarter
Hundred reported the following transactions in the first two quarters of 2021:
· Dividends of 300,000 were received on February 14.
· Rent of 150,000, which is for a ten-month period starting March 1, was paid in May 1
· Equipment with a carrying amount of 400,000 on January 1 was classified as held for sale on January 12. Impairment gain of 100,000 resulted from this transaction.
· Advertising costs of 240,000 was paid in February 23. This would cover advertising and marketing campaigns of the company for 15 months starting February 1, 2021.
· Annual sales are estimated to amount 15 million. Sales for the first quarter is 3 million while sales for the second quarter was 4.8 million
· Costs of sales in the first quarter and the second quarter amounts to 1.5 million and 3 million respectively.
· Annual salaries are estimated at 1 million
· Other operating expenses for the first and the second quarters were 200,000 and 350,000 respectively.
Determine the net income in the first quarter
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