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:

Solution

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