<span>The American Opportunity Credit is a tax credit that is offered on education expenses for eligible students that qualify. It is only applicable in the first four years that a student is attending a type of higher education and the maximum yearly credit caps out at $2500 per student who is eligible.</span>
Answer:
The net income amount is $101250
The income statement is made in the explanation part.
Explanation:
<u>Income Statement</u>
$ $
Sales 950000
Less:COGS <u>(400000)</u>
Gross profit 550000
<u>Less:Expenses</u>
Selling &Marketing expenses 160000
General & Admin expenses 200000
Depreciation <u>30000 </u> <u>(390000)</u>
Operating Profit 160000
less: Interest expense <u>(25000)</u>
Earnings before tax 135000
less: Tax (at 25%) <u>(33750)</u>
Net Income <u>101250</u>
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