Answer:
a) Operating Income = $73,000
b) Net income before income tax = $25,500
Explanation:
First part of the question is to determine the operating income or loss of the business
It is calculated as follows
Particulars                                          Amount
Sales Revenue                                  $460,000
Subtract: Cost of goods sold           ($240,000)
General and Administrative exp.       ($56,000)
Restructuring Costs                             ($58,000)
Selling Expenses                                  ($33,000)
Operating Income                             $73,000
Second part is to determine the income or loss before income taxes
Particulars                                            Amount
Operating Income                                 $73,000
Add: Interest Revenue                         $6,500
Deduct:Loss on sales of investment  ($54,000)
Income before Income Tax                  $25,500
Finally, the Net Income or loss after Income tax
$25,500 x .25 = $6,375