Use the following to answer questions $\mathrm{ }$

The company reported the following income statement results:

Sales $$800,000$

Sales returns & allowances $10,000$

Gross profit $383,150$

Operating expense $270,000$

Gain on sale of equipment $15,000$

Net income $92,430$

$23.$ $$\_\_\_\_\_\_\_\_\_\_\_\_$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$)$

$30.$ $$\_\_\_\_\_\_\_\_\_\_\_\_\_\_$Assume the company had a $$2,000$ LOSS $($instead of the $$15,000$ gain$)$ on the sale of

equipment, determine IBT.

Use the following to answer questions $31–32$

Last year the company had the following expenditures related to developing its trademark:

General advertising costs $$200,000$

Advertising specifically focused on trademark $50,000$

Legal fees to register trademark $5,000$

Legal fees for successful defense of new trademark $80,000$

Total $$335,000$

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?