On December 31,2011,The Bates Company's revenues total $300,000 and expenses total $160,000 before consideration of the following:
Accrued wages total $11,000;
Accrued revenues total $36,000;
Depreciation expense is $17,000;
Rental revenue of $9,000 was earned; the rent was prepaid by a tenant and was recorded by Bates as unearned rent revenue;
The income tax rate is 40%.
What is Bates' net income after consideration of the above information?

Question

On December 31,2011,The Bates Company's revenues total $300,000 and expenses total $160,000 before consideration of the following:
 Accrued wages total $11,000;
 Accrued revenues total $36,000;
 Depreciation expense is $17,000;
 Rental revenue of $9,000 was earned; the rent was prepaid by a tenant and was recorded by Bates as unearned rent revenue;
The income tax rate is 40%.
What is Bates' net income after consideration of the above information?

Quizplus · Accepted Answer

Revenues $345,000 = $300,000 + $36,000 + $9,000 Expenses 188,000 = $160,000 + $11,000 + $17,000 Income before taxes 157,000 Income tax expense 62,800 = $157,000 * .40 Net Income $94,200

On December 31,2011,The Bates Company's Revenues Total $300,000 and Expenses