Question

Lant Company has provided the following information:

• Cash sales totaled $220,000.
• Credit sales totaled $482,000.
• Cash collections from customers for services yet to be provided totaled $82,000.
• A $18,000 loss from the sale of property and equipment occurred.
• Interest income was $8,000.
• Interest expense was $18,200.
• Supplies expense was $320,000.
• Rent expense for the store was $32,000.
• Wages expense was $42,000.
• Other operating expenses totaled $72,000.
• Unearned revenue was $4,900.

What is the amount of Lant’s income before income taxes?

Multiple Choice

A)$207,800

B)$218,000

C)$382,000

D)$289,800

Answer 1

Answer: Option A $207800

Explanation:

Calculation of Income Before Income taxes
Particulars	Amount	Amount
Sales
Cash Sales	$220000
Credit Sales	$482000	$702000
Less: Expenses
Supplies Expense	$320000
Interest Expense	$18200
Rent Expense	$32000
Loss from Sale of property	$18000
Wages Expense	$42000
Other Operating Expense	$72000
Total Expenses		($502200)
Add: Intreest Income		$8000
Income Before Income Taxs		$207800