John is president of a small corporation. At the end of the year, his accountant calculates thefollowing costs attributable to the business. Payroll for wages and salaries: $100,000Interest paid to banks: $40,000 Depreciation on equipment: $80,000 Supplies, utilities:$50,000The equity of the corporation, a measure of the value of its assets less debt, is estimated tobe $200,000. John forgoes a return of 10% per year by keeping the equity in thecorporation.The normal profit for the corporation this year isSelect one:O a. zero.O b. $24,000.O c. $50,000.O d. $20,000.

It refers to the individuals that provide liquidity to the company and in return, the company offers…

Answered: The equity of the corpor be $200,000.…

Business

Accounting

The equity of the corpor be $200,000. John forg rnoration

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter4: Gross Income: Concepts And Inclusions

Section: Chapter Questions

Problem 17DQ

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