AccountingPrepare a balance sheet at May 31 2012. Murray appropriately records a

AccountingPrepare a balance sheet at May 31 2012. Murray appropriately records any depreciation expense on a quarterly basis. How could Murray have determined that the business operated at a profit of $1650? How could Murray conclude that the business operated at a loss of $4900?AnalysisAssume Murray has asked you to become a partner in his business. Under the partnership agreement after paying him $10000 you would share equally in all future profits. Which of the two income measures above would be more useful in deciding whether to become a partner? Explain.PrinciplesWhat is income according to GAAP? What concepts do the differences in the three income measures for The Caddie Shack Driving Range illustrate?