Pretax income: It is an income that is calculated by subtraction operating expenses (includes interest and depreciation ) from total sales or revenues. Tax Expense: It is the income or amount that an organization has to pay to the government. To calculate: The pretax income, tax expense or benefit for the first and second quarter.

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Chapter 12, Problem 7E

To determine

Pretax income:

It is an income that is calculated by subtraction operating expenses (includes interest and depreciation) from total sales or revenues.

Tax Expense:

It is the income or amount that an organization has to pay to the government.

To calculate:

The pretax income, tax expense or benefit for the first and second quarter.

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