Answer:
We have two revenues: comissions earned, and rental services fees. The rest of the items are expenses. We simply have to add up all the revenues and all the expenses, and later, substract the expenses from the revenues. Then, we substract the income tax.
Revenues
Commissions $150,900
Rental Fees $820,000
Total Revenues $970,900
Expenses
Salaries expense $562,740
Commissions expense $35,330
Payroll tax expense $2,500
Rent paid $1,475
Utilities expense $1,600
Promotion and avertising expense $7,750
Miscellaneous expense $5,500
Total Expenses $616,895
Pre-Tax Income = $970,900 - $616,895
= $645,005
Income tax paid = $24,400
Net Income = $645,005 - $24,400
= $620,605
