Question
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
Step by Step Solution
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