Presented below are selected ledger accounts of Coronado Corporation as of December 31, 2020. Cash $51000 Administrative expense

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Presented below are selected ledger accounts of Coronado Corporation as of December 31, 2020. Cash $51000 Administrative expense

s 102000 Selling expenses 81600 Net sales 550800 Cost of goods sold 214200 Cash dividends declared (2020) 20400 Cash dividends paid (2020) 15300 Discontinued operations (loss before income taxes) 40800 Depreciation expense, not recorded in 2019 30600 Retained earnings, December 31, 2019 91800 Effective tax rate 20%Compute net income for 2020.

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1 answer:

Katen [3.5K] · Answer 1 · 2026-04-11T03:01:39+03:00

The net income recorded for 2020 totals $171,360. Explanation: The calculation for net income is outlined as follows: Net income = Net sales - Cost of goods sold - Administrative costs - Selling costs - Loss from discontinued operations - income tax expenditure, which translates to $550,800 - $214,200 - $81,600 - $40,800 - $42,840 equals $171,360. The income tax expense calculation is done as follows: Income tax expense = (Net sales - Cost of goods sold - Administrative costs - Selling expenses - Discontinued operations) multiplied by the income tax rate, yielding $214,200 multiplied by 20%, resulting in $42,840.