Given the expanded business skills you're picking up in the BBA Program, your brother-in-law wants you to help him with his business accounts. He's provided the following information concerning his business, Shiftless Yard Services, Inc. for 2011.
Sales revenue $4,200 Cost of goods sold $2,000
Accounts receivable $500 Gross fixed assets $2,800
Interest expense $140 Number of common shares 1,000
Total Sales/Gen/Admin exp $600 NOI $1,300
Accounts payable $240 NI $754
Shiftless Yard Services, Inc. uses straight-line depreciation.
Given this info, he's offered you a case of beer if you can answer the following questions that would allow him to complete his income statement for 2011.
What depreciation expense should he use?