Jake Smith opened his Balinese coffee shop business in downtown Boise on January 1st 2010. On December 31st, 2010, he sat down with his accountant to figure out how his business had done in its first year and heaved a sigh of relief when his accountant reported that his EBT came to $20,000. Revenues, at $1,050,000 looked good. His expenses were as follows:_x000D_
_x000D_
_x000D_
_x000D_
Salaries and benefits paid to employees $210,000_x000D_
_x000D_
Jake’s own salary $100,000_x000D_
_x000D_
Supplies (coffee, tea, milk, pastries, etc.) $620,000_x000D_
_x000D_
Cost of Restaurant grade coffee machine $30,000_x000D_
_x000D_
Miscellaneous operating costs $44,000_x000D_
_x000D_
Interest on loan $12,000_x000D_
_x000D_
How much did Jake’s accountant allocate for depreciation and amortization?_x000D_
_x000D_
a. $44,000_x000D_
_x000D_
b. $14,000_x000D_
_x000D_
c. $4,000_x000D_
_x000D_
d. $0.00_x000D_
Looking for the best essay writer? Click below to have a customized paper written as per your requirements_x000D_
_x000D_
_x000D_
_x000D_
