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 can be calculated using the formula:
Net income = Total revenue - (Cost of goods sold + Operating expenses + Interest expense + Tax expense)
Plugging in the given values:
Net income = $550,000 - ($274,000 + $90,000 + $10,000 + $20,000)
Net income = $550,000 - $394,000
Net income = $156,000
Therefore, the correct answer is choice C.

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