b For Markle Corporation in 2019 Net Income is lower than I

b) For Markle Corporation in 2019, Net Income is ________ lower than Income from Continuing Operations.

I know for part a the answer is 74,214 & answer to part b is 34,300 but how did they get that?

Presented below are selected ledger accounts of Markle Corporation as of December 31, 2019. Cash Administrative expenses Selling expenses Net sales Cost of goods sold Cash dividends declared (2019) Cash dividends paid (2019) Discontinued operations (loss before income taxes) Depreciation expense, not recorded in 2018 Retained earnings, December 31, 2018 Effective tax rate 30% $54,000 104,600 81,080 553,800 262,100 21,880 18,500 49,000 32,700 93,060

Solution

a)

b)

For Markle Corporation in 2019, Net Income is _____34300___ lower than Income from Continuing Operations.

Net sales	553800
less:cost of goods sold	(262100)
Gross margin	291700
selling expense	(104600)
administrative expense	(81080)
Income from continuing operation (before tax)	106020
less:Income tax expense [106020*.30]	(31806)
Income from continuing operations net of tax	74214