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24 January, 06:42

Frank Town Farms has sales of $481,600, costs of $379,700, depreciation expense of $32,100, and interest paid of $8,400. The tax rate is 32%. How much net income did the firm earn for the period? A. $41,752B. $43,090C. $43,380D. $45,671E. $45,886

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  1. 24 January, 08:47
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    net income = $41752

    so correct option is A. $41,752

    Explanation:

    given data

    sales price = $481,600

    costs price = $379,700

    depreciation expense = $32,100

    interest paid = $8,400

    The tax rate = 32%

    to find out

    net income did the firm earn for the period

    solution

    we get here net income that earn for the period is express as

    net income = (sales price - costs price - depreciation expense - interest paid) * (1 - tax rate) ... 1

    put here value we get

    net income = ($481,600 - $379,700 - $32,100 - $8,400) * (1 - 32%)

    net income = $41752

    so correct option is A. $41,752
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