Question
A company has the following results for the year ending December 31, 2020 Sales Revenue $4,995,000 Cost of Goods Sold $1,785,000 Salaries and Wages Expense
A company has the following results for the year ending December 31, 2020
| Sales Revenue | $4,995,000 |
| Cost of Goods Sold | $1,785,000 |
| Salaries and Wages Expense | $602,000 |
| Sales Commissions | $575,000 |
| Sales Discounts | $490,000 |
| Other Administrative Expenses | $307,000 |
| Depreciation of Equipment | $189,000 |
| Rent Revenue | $120,000 |
| Advertising Expense | $85,000 |
| Interest Expense | $55,000 |
| Dividend Revenue | $30,000 |
| Loss of Sale of Investments | $7,000 |
On September 1, 2020, the company decided to eliminate a division. During 2020, losses relating to the eliminated division total $253,000. The above results in the table do not include this amount.
The company's income tax rate is 40%. All given amounts are pre-tax figures.
What is the company's net income or loss from 2020?
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Sound Investing, Chapter 10 - One-Time Charges And Other Format Fakes
Authors: Kate Mooney
2nd Edition
0071719326, 9780071719322
