Assignment:
You have been given the following information for Corky Bedding Corp.:
- Net sales = $11,000,000.
- Cost of goods sold = $7,400,000.
- Other operating expenses = $100,000.
- Addition to retained earnings = $1,050,000.
- Dividends paid to preferred and common stockholders = $300,000.
- Interest expense = $840,000.
The firm tax rate is 40 percent.
Required:
Question: Calculate the depreciation expense for Corky Bedding Corp.
Note: Please show how to work it out.