Question
On December 31, 2019, Krug Company prepared adjusting entries that included the following items: Depreciation expense: $28,000. Accrued sales revenue: $26,000. Accrued expenses: $18,000. Used
On December 31, 2019, Krug Company prepared adjusting entries that included the following items:
Depreciation expense: $28,000.
Accrued sales revenue: $26,000.
Accrued expenses: $18,000.
Used insurance: $6,000; the insurance was initially recorded as prepaid.
Rent revenue earned: $4,000; the rent was initially prepaid by the tenant and credited to unearned rent revenue.
If Krug Company reported pretax income of $200,000 prior to the adjusting entries, how much is Krug's pretax income after the adjusting entries?
Multiple Choice
A)$184,000.
B)$178,000.
C)$202,000.
D)$180,000.
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