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The initial cost of a project is 1000 monetary units, its useful life is 5 years and the scrap value is 2000 monetary units. Gross income in the first year is 3000 monetary units and every year 500 monetary units are added to it. The operating cost of the first year is 1000 monetary units and 500 monetary units are added to it every year. If the method of calculating the depreciation of the sum of the annual figures and the tax rate is equal to 10%. What is the net income in the fourth year?

The initial cost of a project is 1000 monetary units, its useful life is 5 years and the scrap value is 2000 monetary units. Gross income in the first year is 3000 monetary units and every year 500 monetary units are added to it. The operating cost of the first year is 1000 monetary units and 500 monetary units are added to it every year. If the method of calculating the depreciation of the sum of the annual figures and the tax rate is equal to 10%. What is the net income in the fourth year?

FINANCIAL ACCOUNTING
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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The initial cost of a project is 1000 monetary units, its useful life is 5 years and the scrap value is 2000 monetary units. Gross income in the first year is 3000 monetary units and every year 500 monetary units are added to it. The operating cost of the first year is 1000 monetary units and 500 monetary units are added to it every year. If the method of calculating the depreciation of the sum of the annual figures and the tax rate is equal to 10%. What is the net income in the fourth year?
Transcribed Image Text:The initial cost of a project is 1000 monetary units, its useful life is 5 years and the scrap value is 2000 monetary units. Gross income in the first year is 3000 monetary units and every year 500 monetary units are added to it. The operating cost of the first year is 1000 monetary units and 500 monetary units are added to it every year. If the method of calculating the depreciation of the sum of the annual figures and the tax rate is equal to 10%. What is the net income in the fourth year?
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