Question

Question 4 (1 point)

$45,000 Accounts Payable Cost of Goods Sold 230,000 Gain on Sale of Equipment 15,000 General and Admin Expense 160,000 Loss from Discontinued Ope 10,500 Salaries Payable 20,000 Tax Expense 60,000

Blanton is preparing their multi-step income statement and have downloaded their income statement accounts. Two accounts were downloaded incorrectly and do not belong on the income statement (HINT: you have to identify the wrong accounts). These two replace the wrong accounts shown above:

Selling Expenses 11,000

Sales Revenue 583,000

What is Blanton Co's income before taxes and discontinued operations for the period?

Enter your response as a whole number, no commas and no dollar sign.

Answer 1

The two incorrect accounts are -

1. accounts payable
2. salaries payable

income before taxes and discontinued operations is 197000

Income Statement	Amount
Sales revenue	583000
less: cost of goods sold	-230000
gross profit	353000
less:selling expenses	-11000
less:general & admin expenses	-160000
operating profit	182000
gain of sale of equipment	15000
income before tax	197000
tax expense	-60000
income from continued operations	137000
loss from discontinued operations	-10500
Net income	126500