Last year, Bad Tattoo Company had additions to retained earnings of $4,270 on sales of $94,090. The company had costs of $74,730, dividends of $2,620, and interest expense of $1,560. If the tax rate was 21 percent, what the depreciation expense?

Last year, Bad Tattoo Company had additions to retained earnings of $4,270 on sales of $94,090. The company had costs of $74,730, dividends of $2,620, and interest expense of $1,560. If the tax rate was 21 percent, what the depreciation expense?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Last year, Bad Tattoo Company had additions to retained earnings of $4,270 on sales of $94,090. The company had costs of $74,730, dividends of $2,620, and
interest expense of $1,560. If the tax rate was 21 percent, what the depreciation expense?
Multiple Choice
$8,035
$13,574
$9,078
$7,084
$6,890

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