In June, Blackfly Ltd. received a $6,000 cash payment for work performed & billed the previous month. The company replanted a clear-cut area of northern Alberta for which it sent out an invoice for $20,000. At the beginning of the month the company had $1,000 of trees for planting. During the month the company purchased $2,000 more, and at the end of the month it was left with trees that had cost $1,000. The company's expenses were $1,000 in rent for its office and $3,000 in other expenses. Amortization on the truck and office equipment was calculated to be $1,500. The income tax rate is 10%. Net income for June was $11,250 ne of the listed answers are correct $15,500 $9,900 $10,800
In June, Blackfly Ltd. received a $6,000 cash payment for work performed & billed the previous month. The company replanted a clear-cut area of northern Alberta for which it sent out an invoice for $20,000. At the beginning of the month the company had $1,000 of trees for planting. During the month the company purchased $2,000 more, and at the end of the month it was left with trees that had cost $1,000. The company's expenses were $1,000 in rent for its office and $3,000 in other expenses. Amortization on the truck and office equipment was calculated to be $1,500. The income tax rate is 10%. Net income for June was $11,250 ne of the listed answers are correct $15,500 $9,900 $10,800
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![In June, Blackfly Ltd. received a $6,000 cash payment for work performed & billed
the previous month. The company replanted a clear-cut area of northern Alberta for
which it sent out an invoice for $20,000. At the beginning of the month the company
had $1,000 of trees for planting. During the month the company purchased $2,000
more, and at the end of the month it was left with trees that had cost $1,000. The
company's expenses were $1,000 in rent for its office and $3,000 in other expenses.
Amortization on the truck and office equipment was calculated to be $1,500. The
income tax rate is 10%. Net income for June was
O$11,250
none of the listed answers are correct
$15,500
$9,900
$10,800](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8f10230f-de28-4b13-be4f-040d677e1c39%2Fb2623a26-8c6b-4247-bc90-7935d3f9661b%2Funtxpnt_processed.jpeg&w=3840&q=75)
Transcribed Image Text:In June, Blackfly Ltd. received a $6,000 cash payment for work performed & billed
the previous month. The company replanted a clear-cut area of northern Alberta for
which it sent out an invoice for $20,000. At the beginning of the month the company
had $1,000 of trees for planting. During the month the company purchased $2,000
more, and at the end of the month it was left with trees that had cost $1,000. The
company's expenses were $1,000 in rent for its office and $3,000 in other expenses.
Amortization on the truck and office equipment was calculated to be $1,500. The
income tax rate is 10%. Net income for June was
O$11,250
none of the listed answers are correct
$15,500
$9,900
$10,800
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