Answer:
$144
Explanation:
The computation of the net income is shown below:
Net income = Net sales - Cost of goods sold - operating expenses - income tax expense
where,
Cost of goods sold = $2,800 - $880 = $1,680
Income tax expense = ( Net sales - Cost of goods sold - operating expenses) × tax rate
= ($2,800 - $1,680 - $880) × 40%
And, the other items values would remain the same
Now put these values to the above formula
So, the value would equal to
= $2,800 - $1,680 - $880 - $96
= $144
