Problem: Garber Corp.'s trial balance of income statement accounts for the year ended December 31, 2001 included the following:
Debit Credit
———————— ————————
Sales $280,000
Cost of sales $120,000
Administrative expenses 50,000
Loss on sale of equipment 18,000
Commissions to salespersons 20,000
Interest revenue 5,000
Freight-out 6,000
Loss due to fire damage 30,000
Bad debt expense 6,000
———————— ————————
Totals $250,000 $290,000
Other information:
Garber’s income tax rate is 30%.
Finished goods inventory:
January 1, 2001 $160,000
December 31, 2001 140,000
Found out what the income is before extraordinary item for Garber Corp. (show your work).