Answer:
$50,180
Explanation:
Preparation of Income Statement
NEIGHBORHOOD REALTY, Incorporated Income Statement For the Year Ended December 31,
REVENUE :
Commissions earned$167,700
($150,900+ $16,800)
Rental service fees 20,000
Total revenues $187,700
EXPENSES :
Salaries expense $62,740
Commissions expense $35,330
Payroll taxes $2,500
Rent Expenses $2,700
($2,475/11 month=225)
($2,475+225=$2,700)
Utilities expense $1,600
Promotion and advertising $7,750
Miscellaneous expenses $500
Total expenses (excluding income taxes) $113,120
Pretax income $74,580
($187,700-$113,120)
Income tax expense 24,400
Net income $50,180
($74,580-24,400)
Therefore NEIGHBORHOOD REALTY, Incorporated Income Statement For the Year Ended December 31, NET INCOME will be $50,180
