How do I calculate the depreciation expense?
sales = $34000
costs = $16000
addition to retained earnings = $4300
dividends paid = $1200
interest expense = $2300
tax rate = 35%
Please see the response to your posting as below:
Earning after tax (Net income)= Addition to retained earnings+ Dividends paid = $4300+$1200 =$5500
Solution shows computation of depreciation expense.