Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The trial balance for Nikita, Inc. for the year ended December 31, 2022 included the following accounts: Sales revenue = $340,000 Cost of goods sold

The trial balance for Nikita, Inc. for the year ended December 31, 2022 included the following accounts:

Sales revenue = $340,000

Cost of goods sold = $158,000

Selling and administrative expenses = $71,000

Interest income = $96,000

Other expenses = $45,000

Gain on derivatives = $13,650

Gain on investment securities = $2,027

  • The gains on derivatives and investment securities are unrealized and classified as other comprehensive income
  • Each component of other comprehensive income should be calculated net of tax
  • The companys income tax rate on all items is 30%

Based on the information above, what is the companys income tax expense amount?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting For MBAs

Authors: Peter D. Easton, John J. Wild, Robert F. Halsey, Mary Lea McAnally

3rd Edition

0978727932, 978-0978727932

More Books

Students also viewed these Accounting questions

Question

What is the difference between an IPO and a secondary issue?

Answered: 1 week ago

Question

How does or how might the key public affect your organization?

Answered: 1 week ago