During the current fiscal year,a company had revenues of $400,000,cost of goods sold of $280,000,and an income tax rate of 30 percent on income before income taxes.What was the company's current year net income?

Question

Quizplus · Accepted Answer

Net Income = (Revenue - Cost of Goods Sold) x (1 - Tax Rate)
Net Income = ($400,000 - $280,000) x (1 - 0.30)
Net Income = $120,000 x 0.70
Net Income = $84,000

Therefore, the company's current year net income is $84,000, which is option C.

During the Current Fiscal Year,a Company Had Revenues of $400,000,cost