Question

For Mortenson Company, the following information is available: Cost of goods sold is $390,000; Dividend revenue is $15,000; Income tax expense is $36,000; Operating expenses is $138,000; Sales revenue is $600,000.

Answer 1

C) Should be reported at $210,000

Step-by-step explanation:

The computation of the gross profit in case of the multi-step income statement is presented below:

Mortenson Company

Multi step income statement

Sales $600,000

Less: Cost of goods sold -$390,000

Gross profit $210,000

After deducting the cost of goods sold from the sales we can get the gross profit