Problem
For the month ended February 28, 2014, a company capitalized a $3,000 expenditure that should have been expensed. Depreciation expense for the full month, using the straight-line method, was recorded for $120 in February with respect to this item. Reported operating income for February was $11,700.
a. Calculate the amount of net income that should have been reported for February.
I just need to know where to start or a particular formula that could be used to help me get started. Can you please assist?