Question

Errera Corporation has total sales of $3,110,400 and costs of $2,776,000. Depreciation is $258,000. What is the net income of Errera Corporation?

1) 334,400
2) 334,000
3) 334,800
4) 334,600

Answer 1

The net income of Errera Corporation is calculated by subtracting the total costs and depreciation from the total sales, which equals $76,400.

Step-by-step explanation:

The net income of Errera Corporation can be calculated by subtracting the total costs and depreciation from the total sales. The formula to calculate net income is:

Total Sales - Total Costs - Depreciation = Net Income

In this case, the total sales are $3,110,400, the total costs are $2,776,000, and the depreciation is $258,000.

Subtracting the total costs and depreciation from the total sales, we get:

$3,110,400 - $2,776,000 - $258,000 = $76,400

Therefore, the net income of Errera Corporation is $76,400.