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Empress Company provided the following data for the current year: Retained earnings, January 1 3,000,000 Dividends declared 1,000,000 Sales 8,400,000 Dividend income 100,000 Inventory, January

Empress Company provided the following data for the current year:

Retained earnings, January 1                               3,000,000

Dividends declared                                                1,000,000

Sales                                                                       8,400,000

Dividend income                                                       100,000

Inventory, January 1                                               1,000,000

Purchases                                                               3,700,000

Salaries                                                                   1,540,000

Contri8bution to employee's pension fund                300,000

Delivery                                                                      200,000

Miscellaneous expense                                             120,000

Doubtful account expense                                         10,000

Depreciation expense                                                80,000

Loss on sale of invenstment                                    100,000

Income from discontinued operation,

net of tax                                                                  500,000

Income tax expense                                                 150,000

Inventory on December 31 at cost                            850,000

Net realizable value of inventory                               700,000

 

REQUIRED:

1. What amount should be reported as net income after the current year?

A. 2,000,000

B. 2,500,000

C. 1,500,000

D. 2,650,000

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