Mulan Enterprises pays $235,200 for equipment that will last five years
and have a $52,500 salvage value. By using the equipment in its
operations for five years, the company expects to earn $85,500 annually,
after deducting all expenses except depreciation.
Required:
Calculate the income before depreciation, depreciation expense, and net
(pretax) income for each year and the total for the five-year period,
assuming straight-line depreciation.
