The following is a partial year-end adjusted trial balance Account Title Sales r
ID: 2538722 • Letter: T
Question
The following is a partial year-end adjusted trial balance Account Title Sales revenue Loss on sale of investments Interest revenue Cost of goods sold General and administrative expenses Restructuring costs Selling expense:s Income tax expense Debits Credits 300,000 22,000 4,000 160,000 40,000 50,000 25,000 Income tax expense has not yet been recorded. The income tax rate is 40% a. Determine the operating income (loss) b. Determine the income (loss) before income taxes c. Determine the net income (loss) a. Operating income (loss) b. Income (loss) before income taxes C. Net income (loss)Explanation / Answer
a.Operating income
Sales = 300,000
Less:- operating expenses
Cost of goods sold 160,000
General &administrative expenses 40,000
Restructuring cost 50,000
Selling expenses 25,000
_________
25,000
___________
b.income before income tax
Operating income . = 25,000
+Interest revenue = 4,000
- loss on sale of invest ment. = 22,000
________
(1000)
_________
c. Net income = (1000) - ( 1000 * 40%)= (1400)
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.