Purrfect Pets had income before income tax of $164,000 last quarter and a 34% tax rate.Its net income should be reported as:

Question

Quizplus · Accepted Answer

To calculate the net income, we need to subtract the income tax from the income before income tax:

Income before income tax = $164,000

Income tax = 34% of $164,000 = $55,760

Net income = Income before income tax - Income tax = $164,000 - $55,760 = $108,240

Therefore, the correct answer is B) $108,240.

Purrfect Pets Had Income Before Income Tax of $164,000 Last