Question
Colby Corporation has provided the following information: Operating revenues from customers were $199,700; $20,000 has yet to be collected; also, $45,000 was collected from customers
Colby Corporation has provided the following information:
Operating revenues from customers were $199,700; $20,000 has yet to be collected; also, $45,000 was collected from customers as deposits for future services.
Operating expenses for the store were $111,000 of which $5,000 has not yet been paid for.
Interest expense was $9,200.
Gain from sale of plant and equipment was $3,300.
And a Gain on the sale of investments was $1,500.
Dividend payments to Colby's stockholders were $7,700, when $9,000 was declared during the year.
Income tax expense was $36,000.
Prepaid rent was $5,000.
What is the amount of Colby's income before income taxes?
Correct Answer: $84300
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