Question

The following information was extracted from the 2014 financial statements of Max Company: Income from continuing operations before income tax $470,000 Selling and administrative expenses 320,000 Income from continuing operations 329,000 Gross profit 900,000 Income before extraordinary item 290,000 The amount reported for other expenses and losses is:_________ a. $141,000 b. $39,000. c. $110,000. d. $150,000.

Answer 1

c. $110,000

Step-by-step explanation:

The computation of the amount reported for other expenses and losses is shown below;

= Gross profit - Selling and administrative expenses - Income from continuing operations before income tax

= $900,000 - $320,000 - $470,000

= $110,000

Hence, the option c is correct