Multiple Choice
A company started business on January 1, 2006. At the end of 2006, the accounting records provided the following unadjusted and pre-tax amounts: Sales revenue (cash) , $186,000; cost of goods sold, $100,000; expenses (cash) , $40,000; accrued wages, $6,000; accrued rent revenue, $2,000; and a 40 percent average income tax rate. What was the net income on accrual basis?
A) $22,800
B) $25,200
C) $27,600
D) $30,000
Correct Answer:
Verified
Correct Answer:
Verified
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