Presented below is information related to Donaldson Corp., for the year 2022. Prepare an income statement and answer the question below and other questions requiring the use of this income statement.Net sales$1,820,000Cost of goods sold1,240,000Selling expenses86,000Administrative expenses144,000Dividend revenue25,000Rent revenue20,000Interest expense50,000Flood damage loss40,000Loss from operations of discontinued, net of tax190,000Gain from disposal of component, net of tax260,000Federal tax rate of 20% on all items.In the multiple-step income statement for 2022, how much was net income?.a. $350,000b. $380,000c. $314,000d. $370,000

Multi income statement is detailed statement of the net income and separates operations revenues and…

Answered: ear 2022. Prepare an income statement…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Presented below is information related to Donaldson Corp., for the year 2022. Prepare an income statement and answer the question below and other questions requiring the use of this income statement.

Net sales	$1,820,000
Cost of goods sold	1,240,000
Selling expenses	86,000
Administrative expenses	144,000
Dividend revenue	25,000
Rent revenue	20,000
Interest expense	50,000
Flood damage loss	40,000
Loss from operations of discontinued, net of tax	190,000
Gain from disposal of component, net of tax	260,000

Federal tax rate of 20% on all items.

In the multiple-step income statement for 2022, how much was net income?

a. $350,000

b. $380,000

c. $314,000

d. $370,000

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