Answer:
$200,000
Explanation:
Here, in the solution the tax effects are ignored as tax rate is not provided.
Since accrual basis is the acceptable basis, we have:
All the revenues and expenses are to be recognised in the period it belongs to, and not when the actual cash payment is received or made.
Total revenue earned in 2015 = $400,000
Total expense (Wages of employees) for 2015 = $200,000
Therefore, net income for 2015 = $400,000 - $200,000 = $200,000
Note: It is of no relevance that when actual cash was realised from debtors and when actual payment was made to employees.
