Exercise 4-08 (Part Level Submission)

Presented below are selected ledger accounts of Kingbird Corporation as of December 31, 2020.

Cash $60,000

Administrative expenses 120,000

Selling expenses 96,000

Net sales 648,000

Cost of goods sold 252,000

Cash dividends declared (2020) 24,000

Cash dividends paid (2020) 18,000

Discontinued operations (loss before income taxes) 48,000

Depreciation expense, not recorded in 2019 36,000

Retained earnings, December 31, 2019 108,000

Effective tax rate 20%

Collapse question part

(a)

Compute net income for 2020.

Net income

$