Colby Corporation has provided the following information: • Operating revenues from customers were $199,700.
• Operating expenses for the store were $111,000.
• Interest expense was $9,200.
• Gain from sale of plant and equipment was $3,300.
• Dividend payments to Colby's stockholders were $7,700.
• Income tax expense was $36,000.
• Prepaid rent expense was $5,000.
What is the amount of Colby's income before income taxes?
A)$70,100.
B)$75,100.
C)$82,800.
D)$92,000.

Question

Quizplus · Accepted Answer

- Operating income: $199,700 - $111,000 = $88,700
- Net income before taxes: $88,700 + $3,300 - $9,200 - $7,700 = $75,100
- Income tax expense: $36,000
- Income before income taxes: $75,100 + $36,000 = $82,800

Colby Corporation Has Provided the Following Information: • Operating Revenues