Use the following to answer questions 23 - 30

PMJ Corp. reported the following income statement results:

Sales	$800,000
Sales returns & allowances	2,000
Gross profit	344,700
Operating expense	215,300
Gain on sale of equipment	4,000
Net income	94,900

23. $____________Calculate Net sales

24. $____________ Calculate Cost of Goods Sold

25. $____________ Calculate operating income

26. $____________Calculate Income before Income tax (IBT)

27. $____________ Calculate income tax expense

28. ___ ___. ___%. Calculate the gross profit margin (one decimal place)

29. ___ ___.___%. Calculate the profit margin (one decimal place)

30. $______________Assume the company had a loss (instead of the gain) on the sale of equipment of $2,000; determine IBT.

Use the following to answer questions 31 32

Last year T, Inc., had the following expenditures related to developing its trademark:

General advertising costs	$224,000
Advertising specifically focused on trademark	45,500
Legal fees to register trademark	600
Legal fees for successful defense of new trademark	75,000
Total	$344,600

During your year-end review of the accounts related to intangibles, you discover that the company has capitalized all the above as costs of the trademark. Management contends that all the costs increase the value of the trademark and, therefore, should be capitalized.

31. Which of the above costs should NOT be capitalized?

32. $___________ What is the total cost that should be capitalized to the trademark account?