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38 Notes: 1 Roger owns 30% of the outstanding Henry Corp. (HC) stock....

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Accounting

38 Notes:
1 Roger owns 30% of the outstanding Henry Corp. (HC) stock. Henry Corp. reported $1,000,000 of income for the year. Roger accounted
for its investment in HC under the equity method and it recorded its pro rata share of HC's earnings for the year. HC also distributed a
$200,000 dividend to Roger.
2 Of the $20,000 interest income, $5,000 was from a City of Seattle bond, $7,000 was from a Tacoma City bond, $6,000 was from a fully
taxable corporate bond, and the remaining $2,000 was from a money market account.
3 This gain is from equipment that Roger purchased in February and sold in December (i.e., it does not qualify as 1231 gain).
4 This includes total officer compensation of $2,500,000(no one officer received more than $1,000,000 compensation).
5 This amount is the portion of incentive stock option compensation that vested during the year (recipients are officers).
6 Roger actually wrote off $37,000 of its accounts receivable as uncollectible.
?7, Tax depreciation was $1,890,000.
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