The following information applies to the questions displayed below Jing Company was started on January...
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The following information applies to the questions displayed below Jing Company was started on January 1, 2016 when it issued common stock for $36,000 cash. Also, on January 1, 2016 the company purchased office equipment that cost $16,000 cash. The equipment was delivered under terms FOB shipping point, and transportation cost was $2,100. The equipment had a five- year useful life and a $5,800 expected salvage value. Assume that Jing Company earned $23,800 cash revenue and incurred $15,000 in cash expenses in 2018. Using straight-line depreciation and assuming that the office equipment was sold on December 31, 2018 for $9,700, the amount of net income or (loss) appearing on the December 31, 2018 income statement would be: 0 ($2140). O $5,320. O $2,540 O $5,460
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