In reconciling information to complete its financial statements, Flying High Corporation discovered ...

In reconciling information to complete its financial statements, Flying High Corporation discovered the following situations:

Net income before taxes and the changes $400,000
Income tax rate 35%
Bad debt expense increased 1% of sales
Sales $900,000
Equipment original cost  $500,000
Equipment accumulated depreciation   $200,000
Method of depreciation unchanged DDB
Remaining life changed from 5 years to 3 years

Required:  Assuming that no depreciation had been recorded, recompute depreciation expense, bad debt expense, net income before taxes, income tax expense, and net income.