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inna [77]
4 years ago
7

The adjusted trial balance of Norton Company contained the following information. Assume the tax rate is 25%:

Business
1 answer:
const2013 [10]4 years ago
6 0

Answer:

b. $65,000

Explanation:

Particulars                                            Amount

Revenues

Service Revenue                                   $390,000  

Less: Sales Return and allowance       $10,000

Less: Sales Discount                             <u>$5,000   </u>

Net Sales Revenue                                $375,000

Less: Cost of Goods Sold                      <u>$200,000</u>

Gross Profit                                             $175,000

Less: Operating Expenses                     <u>$110,000</u>

Operating Income                                  <u>$65,000</u>

Thus, income from operation is $65,000

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