My Question is #5.

How do we figure out the Income Tax and solve for number 5?

Problem 1: Adjusting Journal Entries and Financial Statements Snorkle-ooo Technology, Inc., a retailer of blue-rubber swim-fins, has a December 31, 2000 year-end for accounting purposes. Snorkle-ooo gives you the following unadjus ted trial balance as of December 31, 2000 Account Cash Debit 45,000 135,000 Credit Accounts Receivable Inventory Prepaid Expenses Property, Plant and Equipment Selling and Administrative Expense Accumulated Depreciation Accounts Payable Notes Payable Common Stock ($1 par value) Additional Paid-in Capital (Common Stock) Retained Eamings Sales Revenue 415,000 32,000 233,000 95,000 55,000 25,000 80,000 75,000 20,000 75,000 625,000 955,000 955,000 Column Totals Additional Information 1. Snorkle-ooo de bits its inventory account whenever inventory is purchased. A physical count of the inventory on December 31, 2000 found that inventory costing $99,400 was on hand. Assume Snorkle-ooo records Cost of Good Sold Expense once a year, at the end of the year. 2. The property, plant and equipment account includes property and equipment costing $180,000 that should be depreciated under the straight-line method. Assume a 6-year life and no salvage value 3. The amount shown as Prepaid Expenses relates to rent paid in advance on Snorkle- ooo's retail outlet. This amount covers sixteen months and was paid on January 1, 2000 4. The Notes Payable are 8%, 4-yearnotes issued on January 1, 2000. Interest is payable once a year, on January 1 5. Snorkle-ooo has a 40% tax rate