In June, Blackfly Ltd. received a $6,000 cash payment for work...
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In June, Blackfly Ltd. received a $6,000 cash payment for work performed \& billed the previous month. The company replanted a clear-cut area of northern Alberta for which it sent out an invoice for $20,000. At the beginning of the month the company had $1,000 of trees for planting. During the month the company purchased $2,000 more, and at the end of the month it was left with trees that had cost $1,000. The company's expenses were $1,000 in rent for its office and $3,000 in other expenses. Amortization on the truck and office equipment was calculated to be $1,500. The income tax rate is 10%. The expected life of the truck and office equipment when purchased new was 3 years, with no residual value and the amortization expense was based on the straight-line model. The original cost of the truck and office equipment was
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