Answer:
a. $73,000
Explanation:
According to the scenario, computation of the given data are as follow:-
Desert company income statement
Particular Amount ($)
Total Revenue (sales revenue + interest revenue) 287,000
Total expenses excluding loss from discontinuing operation
($246,000 - 32,000) -214,000
Income from continuing operations before income tax 73,000
Working notes:
Total Revenue =Sales Revenue + Interest Revenue
= $280,000 + $7,000
= $287,000
Total Expenses = Cost of Goods Sold + Administrative Expenses + Loss on Disposal of Equipment + Sales Commission Expense + Loss From Discontinued Operations + Bad-Debt Expense
= $170,000 + $20,000 + $8,000 + $12,000 + $32,000 + $4,000
= $246,000
