D Question 5 Jing Company was started on January 1, Year 1 when it issued common stock for $50,000 cash. Also, on Januar

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D Question 5 Jing Company Was Started On January 1 Year 1 When It Issued Common Stock For 50 000 Cash Also On Januar 1 (37.51 KiB) Viewed 49 times

D Question 5 Jing Company was started on January 1, Year 1 when it issued common stock for $50,000 cash. Also, on January 1, Year 1 the company purchased office equipment that cost $34,000 cash. The equipment was delivered under terms FOB shipping point, and transportation cost was $2,000. The equipment had a five-year useful life and a $12,000 expected salvage value. Assume that Jing Company earned $30,000 cash revenue and incurred $19,000 in cash expenses in Year 3. Using straight-line depreciation and assuming that the office equipment was sold on December 31, Year 3 for $16,000, the amount of net gain or (loss) appearing on the December 31, Year 3 income statement relating to the sale of the office equipment would be: O $16,000 gain. O $5,600 loss. 3.57 pts O $5.400 loss. O $2,800 gain.