the following is selected information from ace corporation for the fiscal year ending october 31, 2025. cash…

the following is selected information from ace corporation for the fiscal year ending october 31, 2025. cash received from customers $300,000 revenue recognized 440,000 cash paid for expenses 170,000 cash paid for computers on november 1, 2024 that will be used for 3 years 48,000 expenses incurred including any depreciation 216,000 proceeds from a bank loan, part of which was used to pay for the computers 100,000 using on the accrual basis of accounting, what is ace corporations net income for the year ending october 31, 2025? a) $224,000 b) $208,000 c) $254,000 d) $270,000

the following is selected information from ace corporation for the fiscal year ending october 31, 2025. cash received from customers $300,000 revenue recognized 440,000 cash paid for expenses 170,000 cash paid for computers on november 1, 2024 that will be used for 3 years 48,000 expenses incurred including any depreciation 216,000 proceeds from a bank loan, part of which was used to pay for the computers 100,000 using on the accrual basis of accounting, what is ace corporations net income for the year ending october 31, 2025? a) $224,000 b) $208,000 c) $254,000 d) $270,000

Answer

Explanation:

Step1: Recall net - income formula

Net income = Revenue recognized - Expenses incurred

Step2: Identify revenue and expenses

Revenue recognized = $440,000 Expenses incurred = $216,000

Step3: Calculate net income

Net income=$440,000 - $216,000=$224,000

Answer:

a) $224,000