During May, Brunhilde Company earned revenue of €212,000, incurred expenses of €136,000, of which €96,000 were on account, and paid dividends of €32,000. Net income (loss) for the month is

Question

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Net income (loss) = Revenue – Expenses
Expenses = €136,000 – €96,000 (paid on account) = €40,000
Net income (loss) = €212,000 – €40,000 = €172,000
Dividends paid = €32,000
Net income after dividends = €172,000 – €32,000 = €140,000
Therefore, the net income for the month of May is €76,000 (€140,000 – €96,000 of expenses paid on account).

During May, Brunhilde Company Earned Revenue of €212,000, Incurred Expenses