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Holly Farms has sales of $581,600, costs of $479,700, depreciation expense of $32,100, and interest paid of $8,400. The tax rate is 42 percent. How much net income did the firm earn for the period? A. $25,788

35,612

$43,380

$45,671

$45,886

Answer :

ijaz4308

Answer:

B. $35,612

Explanation:

The net income which shall be earned by the Holly Farms shall be determined through following mentioned formula:

Sales                                    $581,600

Costs                                   ($479,700)

Depreciation expense        ($32,100)

Interest expense                 ($8,400)

Income before tax               $61,400

Tax@42%                            ($25,788)

Net income for year            $35,612

So based on the above discussion, the answer is B. $35,612

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