1. During the year, a company had sales of $800,000 expenses of $300,000 and it declared and paid dividends of $250,000. The company began the year with retained earnings of $150,000.

a. What was the company's net income for the year?

b. What was the amount of retained earnings at the end of the year?

1. A company buys a fixed asset at a cost of $100,000. The asset has an estimated useful life of 5 years.

a. For the second year of the asset's life, what amount of depreciation expense will appear on the income statement?

b. For the second year of the asset's life, what amount of accumulated depreciation will appear on the balance sheet?