the following is selected information from ace corporation for the fiscal year ending october 31, 202x. cash…

the following is selected information from ace corporation for the fiscal year ending october 31, 202x. cash received from customers - $300,000 revenue recognized - $440,000 cash paid for expenses - $170,000 cash paid for computers on november 1st that will be used for the next 3 years - $48,000 expenses incurred including any depreciation - $216,000 proceeds from a bank loan, part of which was used to pay for the computers - $100,000 using on the accrual basis of accounting, what is ace corporations net income for the year ending october 31, 2025? select answer from the options below a $254000 b $224000 c $208000 d $270000

the following is selected information from ace corporation for the fiscal year ending october 31, 202x. cash received from customers - $300,000 revenue recognized - $440,000 cash paid for expenses - $170,000 cash paid for computers on november 1st that will be used for the next 3 years - $48,000 expenses incurred including any depreciation - $216,000 proceeds from a bank loan, part of which was used to pay for the computers - $100,000 using on the accrual basis of accounting, what is ace corporations net income for the year ending october 31, 2025? select answer from the options below a $254000 b $224000 c $208000 d $270000

Answer

Explanation:

Step1: Recall net - income formula

Net income = Revenue recognized - Expenses incurred

Step2: Identify relevant values

Revenue recognized = $440,000, Expenses incurred = $216,000

Step3: Calculate net income

Net income=$440,000 - $216,000=$224,000

Answer:

B. $224,000