See problem below question is Net Income of 33740 thats base

See problem below.. question is Net Income of $33,740 thats based on what? I see from the exercise below that the total revenues were $128,400, expenses were 80,200....having trouble deciphering--pretax income..income taxes expenses at 30% pretax which were paid during 2014. Detailed info below.... Assume that you are the president of Highlight Construction Company. At the end of the first year (December 31, 2014) of operations, the following financial data for the company are available: image View comments (2) Expert Answer Anonymous Anonymous answered this Was this answer helpful? 0 0 1,106

was just given the answers---- Total revenues 1,28,400 Less: expenses 80,200 Pre tax income 48,200 Less: tax @ 30% on pretax income 14,460 Net income 33,740

how did you breakdown $48,200 pretax

Solution

Pre tax income = Total revenues - Expenses = 128400-80200 = $48200 Tax = 48200*30% = 14460 Net income = 48200-14460 = 33740