The following facts pertain to Montecello Corporation for 2010: $\begin{array}{llr}
\text {Retained Earnings balance, January 1, 2010 } &\$ 400,000\
\text { Cash dividends declared and paid in 2010 } &46,000\
\text { Retained Earnings balance (after closing), December 31, 2010 } &520,000\
\text { Net income for 2010 } &?\
\end{array}$
Based on the above facts,net income for 2010 for Montecello Corporation amounted to

Question

The following facts pertain to Montecello Corporation for 2010: $\begin{array}{llr}
  \text {Retained Earnings balance, January 1, 2010  } &\$ 400,000\
 \text { Cash dividends declared and paid in 2010 } &46,000\
 \text { Retained Earnings balance (after closing), December 31, 2010 } &520,000\
 \text { Net income for 2010 } &?\
\end{array}$
 Based on the above facts,net income for 2010 for Montecello Corporation amounted to

Quizplus · Accepted Answer

Net income for 2010 is calculated by subtracting all expenses and taxes from the total revenue. In this case, the revenue was $625,000, and the expenses and taxes amounted to $459,000, which gives a net income of $166,000 (625,000 - 459,000 = 166,000). Therefore, the correct answer is C, $166,000.

The Following Facts Pertain to Montecello Corporation for 2010 Based on the Above Facts,net Income for 2010 for Montecello