The following pre-tax amounts pertaining to AMSTERDAM Company for the year ended December 31, 2021: • Sales, P400,000 • Selling and adminstrative expenses, P84,000 • Other income, P40,000 • Interest expense, P4,000 • Cost of goods sold, P280,000 • Correction of prior period error - credit, P16,000 • Post-tax results of discontinued operations - credit, P40,000 • Cumulative effect of change in accounting policy- debit, P24,000 • Retained earnings, January 1, 2021 (not yet restated), P1,600,000 • Dividends declared, P12,000 Income tax rate is 30%
The following pre-tax amounts pertaining to AMSTERDAM Company for the year ended December 31, 2021: • Sales, P400,000 • Selling and adminstrative expenses, P84,000 • Other income, P40,000 • Interest expense, P4,000 • Cost of goods sold, P280,000 • Correction of prior period error - credit, P16,000 • Post-tax results of discontinued operations - credit, P40,000 • Cumulative effect of change in accounting policy- debit, P24,000 • Retained earnings, January 1, 2021 (not yet restated), P1,600,000 • Dividends declared, P12,000 Income tax rate is 30%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
How much is AMSTERDAM's net income for the year ended December 31, 2021?
![The following pre-tax amounts pertaining to AMSTERDAM Company for the year ended December 31, 2021:
• Sales, P400,000
• Selling and adminstrative expenses, P84,000
• Other income, P40,000
• Interest expense, P4,000
• Cost of goods sold, P280,000
• Oorrection of prior period error - credit, P16,000
• Post-tax results of discontinued operations - credit, P40,000
• Cumulative effect of change in accounting policy - debit, P24,000
• Retained earnings, January 1, 2021 (not yet restated), P1,600,000
• Dividends declared, P12,000
• Income tax rate is 30%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F564dd124-7fd7-4d60-980e-773f61b41ead%2F0ae68e4b-0733-454b-be0f-fe9a7ea4bd58%2Fzg4igsn_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The following pre-tax amounts pertaining to AMSTERDAM Company for the year ended December 31, 2021:
• Sales, P400,000
• Selling and adminstrative expenses, P84,000
• Other income, P40,000
• Interest expense, P4,000
• Cost of goods sold, P280,000
• Oorrection of prior period error - credit, P16,000
• Post-tax results of discontinued operations - credit, P40,000
• Cumulative effect of change in accounting policy - debit, P24,000
• Retained earnings, January 1, 2021 (not yet restated), P1,600,000
• Dividends declared, P12,000
• Income tax rate is 30%
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