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The Ace Book Company sold 1,500 finance textbooks for $ 185 each to High Tuition University in 2008. These books cost Ace $145 to produce. Ace spent $10,000(selling expense to convince the university to buy its books. In addition, Ace borrowed $80,000 on January 1, 2008, on which the company paid 10-percent interest. Both interest and principal on the loan were paid on December 31, 2008. Ace's tax rate is 25 percent. Depreciation expense for the year was $15,000.Did Ace Book Company make a profit in 2008? Please verify with an income statement presented in good form.

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Category:- Accounting Basics
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