Answer :
Answer:
The correct answer is option (D).
Explanation:
According to the scenario, given data are as follows:
Total sales = $398,600
Cost of sales goods = $254,800
Depreciation expense = $26,400
Interest expense = $1,600
Tax rate = 34%
Hence, Net income can be calculated by using following formula :
Net income = (Total sales – cost of sales goods – depreciation expense – interest expense) x (1 - tax rate)
= (398,600 - 254,800 - 26400 - 1600) x (1 - 34%)
= (398,600 - 254,800 - 26400 - 1600) x (1 - 0.34)
= 115800 x 0.66
= $76,428
Hence,the correct answer is $76,428.