Current Events > how do i find the depreciation expense when there's no depreciation

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Suppose you are given the following information about ABC Bakery; sales=$30,000; costs=$15,000; addition to retained earnings= $4,000; dividend paid= $500; interest expense=$1,000; tax rate=20 percent. What is the amount of depreciation expense?
A. $4,000
B. $5,500
C. $7,000
D. $8,375
E. $9,000

how am i supposed to find the depreciation expense when i have no information on that. am i supposed to work backwards somewhere?

you just subtract those numbers and shit
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you have to work backwards

start by figuring out net income


here's the answer if you can't figure it out


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ah, i knew i probably had to work backwards somewhere, just didn't know where to even start.

thanks, i really appreciate it.

Equity was always the part of accounting I had the most difficultly getting. But if you know retained earnings is all the income that was otherwise not paid to owners you can work back from there to get net income.
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