Answer:
The net income for 2020 is $171,360
Step-by-step explanation:
The computation of the net income is shown below:
= Net sales - Cost of goods sold - Administrative expenses - Selling expenses - Discontinued operations - income tax expense
= $550,800 - $214,200 - $81,600 - $40,800 - $42,840
= $171,360
The income tax expense is computed below:
= (Net sales - Cost of goods sold - Administrative expenses - Selling expenses - Discontinued operations) × income tax rate
= $214,200 × 20%
= $42,840