Answer:
Income from operations    380,000
Loss on sale of equipment  <u>40,000</u> 
Pretax income                    340,000
Tax at 30%                          <u>102,000</u>
Net Income                         <u>238,000</u>
Explanation:
1          Santos Corporation
          Income statement 
For the year ended December 31, 2020
 Sales................................ $1,500,000 
less: Cost of goods sold <u>$960,000</u> 
Gross Profit                      <u>$540,000</u>
Less: Operating expenses<u> 160,000 </u>
Income from operations    <u>380,000</u>
2          Santos Corporation
              Income statement 
For the year ended December 31, 2020
Income from operations    380,000
Loss on sale of equipment  <u>40,000</u> 
Pretax income                    340,000
Tax at 30%                          <u>102,000</u>
Net Income                         <u>238,000</u>