Question
Logan Corp.'s trial balance of income statement accounts for the year ended December 31, 2011 included the following: Sales $140,000 Cost of sales $ 50,000
Logan Corp.'s trial balance of income statement accounts for the year ended December 31, 2011 included the following:
Sales $140,000 Cost of sales $ 50,000 Administrative expenses 25,000 Loss on sale of equipment 9,000 Commissions to salespersons 8,000 Interest revenue 5,000 Freight-out 3,000 Loss on disposition of wholesale division 12,000
Bad debt expense 3,000
Other information:
Logan's income tax rate is 30%. Finished goods inventory:
January 1, 2011 $80,000
December 31, 2011 70,000
On Logan's income statement for 2011, income from continuing operations is
a. | $35,000 | |
b. | $64,000 | |
c. | $47,000 | |
d. | $24,500 |
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