Answer:
The correct answer is $310,470.
Explanation:
According to the scenario, the computation of the given data are as follows:
First we calculate gross profit:
Gross profit = Sales - Cost of Goods Sold = $796,000 - $327,000 = $469,000
Now, Earnings Before Tax = Gross profit - Depreciation - Interest
= $469,000 - $42,000 - $34,000 = $393,000
So, Net income = Earnings Before Tax - Tax percent on EBT
= $393,000 - 21% × $393,000
= $393,000 - $82,530
= $310,470
