Question

Carson Corporation provided the following​ partial-trial balance for the current year.

Carson Corporation

Trial Balance (Selected Accounts)

For the Year Ended December 31

Account

Debit

Credit

Dividends

$1,370

Sales

$190,000

Dividend Income

530

Interest Income

1,300

Gain on Disposal of Plant Assets

960

Unrealized Gain on Trading Investments

1,600

Cost of Goods Sold

40,000

Office Supplies Expense

5,000

Sales Salaries Expense

4,200

Selling Expenses

9,000

Accounting and Legal Fees—General Expense

770

Advertising Expense

3,600

Office Salaries Expense

7,100

Depreciation Expense—General Expense

8,900

Interest Expense

1,900

Loss on Asset Impairment

2,000

Prepare a​ single-step income statement for the year ended December 31.

CarsonCarson

is subject to a

4040​%

income tax rate. ​(Round all amounts to the nearest whole​ dollar.)

Carson Corporation
Statement of Net Income
For the Year Ended December 31
Net Income

Answer 1

Carson Corporation
Statement of Net Income
For the Year Ended December 31
Sales	$190,000
Less: Cost of Goods Sold	($40,000)
Gross Profit	$150,000
Less: Operating Expenses:
Office supplies expense	($5,000)
Sales salaries expense	($4,200)
Selling expense	($9,000)
Accounting and legal fees - General expense	($770)
Advertising expense	($3,600)
Office salaries expense	($7,100)
Depreciation expense - General Expense	($8,900)
Interest expense	($1,900)
Loss on asset impairment	($2,000)
Add: Operating Income:
Dividend income	$530
Interest income	$1,300
Gain on Disposal of plant assets	$960
Income before tax	$110,320
Less: Income tax ($110,320*40.40/100)	($44,569)
Net Income after Tax	$65,751