Jing company was started on january 1, year 1 when it issued common stock for $28,000 cash. also, on january 1, year 1 the company purchased office equipment that cost $15,200 cash. the equipment was delivered under terms fob shipping point, and transportation cost was $1300. the equipment had a five-year useful life and a $5700 expected salvage value. assume that jing company earned $17,400 cash revenue and incurred $11,000 in cash expenses in year 3. using straight-line depreciation and assuming that the office equipment was sold on december 31, year 3 for $8900, the amount of net income or (loss) appearing on the december 31, year 3 income statement would be:

5,280 net income for the Year 3

Explanation:

This would be the situation:

17,400 revenue

11,000 expenses

gain/loss on sale of equipment

= net income year 3

To know the result of the sale of equipment we have to do

sales price - book value = gain/loss on sale of equipment

8900         -  book value   = gain/loss

We have to determinate the book value.

book value = adquisition cost - acumulated depreciation

The equipment cost 15,200 + 1,300 transportation cost = 16,500 Adquisition Cost

acumulated depreciation = depreciation per year * 3 years

and depreciation per year is:

Here we have all the values, so we stop digging and start solving.

net income = 17,400 - 11,000 - 1,120 = 5,280 net income for the Year 3

3rd the reason why is because of management and leadership

answerreactive approach;