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Calculate the net income after corporate income tax is paid for Quarter 1.

\begin{tabular}{|l|r|r|}
\hline \multicolumn{3}{|c|}{ Income Statement } \\
\hline Net Sales & Q1 (x1000) & Q2 (x1000) \\
\hline COGS & [tex]$(70)$[/tex] & 235 \\
\hline Gross Profit & 130 & [tex]$(150)$[/tex] \\
\hline Overhead & [tex]$(40)$[/tex] & [tex]$(150)$[/tex] \\
\hline Pre-tax Income & 90 & 100 \\
\hline
\end{tabular}

Corporate Income Tax [tex]$=\$[/tex]18,900$

Net Income [tex]$=\$[/tex][?]$



Answer :

GinnyAnswer
To calculate the net income after corporate income tax is paid for Quarter 1, we need to follow these steps:

1. Identify the pre-tax income for Quarter 1.
2. Identify the corporate income tax amount.
3. Subtract the corporate income tax from the pre-tax income to determine the net income.

From the given data:
- The pre-tax income for Quarter 1 is [tex]$90,000$[/tex] dollars.
- The corporate income tax is [tex]$18,900$[/tex] dollars.

Now, we can calculate the net income as follows:

[tex]\[ \text{Net Income Q1} = \text{Pre-tax Income Q1} - \text{Corporate Income Tax} \][/tex]

Substituting the values:

[tex]\[ \text{Net Income Q1} = 90,000 - 18,900 \][/tex]

[tex]\[ \text{Net Income Q1} = 71,100 \][/tex]

Therefore, the net income after corporate income tax is paid for Quarter 1 is $71,100 dollars.

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