Guessco reported the following amounts on its income statement: total revenues,$31,500; interest expense,$300; net income,$1,600; income tax expense,$900; and operating income,$2,800.What was the amount of Guessco's income before income tax expense?
A)$1,300.
B)$2,500.
C)$29,000.
D)$29,900.

Question

Quizplus · Accepted Answer

Income before income tax expense is calculated as operating income plus interest expense. Therefore, $2,800 (operating income) + $300 (interest expense) = $3,100. However, since none of the provided options match this calculation, and assuming a possible typo in the question or answer choices, the closest correct approach to find income before tax would typically involve adding net income and income tax expense: $1,600 (net income) + $900 (income tax expense) = $2,500.

Guessco Reported the Following Amounts on Its Income Statement: Total