Assume that jing company earned $29,400 cash revenue and incurred $18,500 in cash expenses in year 3. the company uses the straight-line method. the office equipment was sold on december 31, year 3 for $10,400. what is the company’s net income (loss) for year 3?

Explanation:

In every single company, the main aim of installing an office equipment is to make profit. After the office equipment made a revenue of $29400, Jing Company incurred expenses of $18500. The value of the equipment was $29400- $18500= $10900. It was sold for $10400 meaning that the net income of the equipment was $10400-$10900= -$500. Therefore, it will incur a net loss of $500.

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