Can any one explain me why the Depreciation expense of 25000.00 has not taken into consideration while calculating normalized operating income after taxes as it is given in the Vignette.
A ranch and living quarters are not required for the farm’s core operations. The reported SG&A expenses include $125,000 ($25,000 toward depreciation and $100,000 for operating expenses) relating to those properties. The ranch and living quarters will be kept by the current owners and are not a part of FDF’s farming operations being considered for purchase by the hedge fund.
I saw this in an earlier mock and wondered the same thing. In my 2015 version, they retracted the $25,000 from the sentence (or at least that is how it was in my version).
You mean they revised thier 2015 Mock?
Yes they have revised there Mock. I have downloaded the fresh Copy now.
A ranch and living quarters are not required for the farm’s core operations. The reported SG&A expenses include $100,000 for operating expenses relating to those properties. The ranch and living quarters will be kept by the current owners and are not a part of FDF’s farming operations being considered for purchase by the hedge fund.
Darn…they dont even inform. Hope they have just corrected the errors and didnt change the mocks entirely.
You r Right…They have not shown in there errata as well. It is easy to reframe the sentence instead of amending the Solution.