Reference no: EM132493752

All of the accounts of the Grass is Greener Company have been adjusted as of December 31, 2016, with the exception of income taxes incurred but not yet recorded. Those account balances appear below. All have normal balances. The estimated income tax rate for the company is 30%.

Cash$368,340

Accounts Receivable 787,950

Interest Receivable 5,150

Prepaid Insurance 7,650

Prepaid Rent 12,900

Supplies 225,400

Equipment 689,500

Accumulated Depreciation--Equipment 142,500

Accounts Payable 298,700

Deferred Revenue 92,100

Income Tax Payable 0

Salaries and Wages Payable 28,500

Notes Payable (long-term) 373,040

Long-Term Debt 246,600

Common Stock 401,000

Retained Earnings 221,000

Dividends 23,400

Service Revenue 955,000

Interest Revenue 131,100

Supplies Expense 353,200

Repairs and Maintenance Expense 261,500

Depreciation Expense 61,150

Rent Expense 32,200

• Income Tax Expense Unknown

Required:

Question a. Calculate the income before income tax.

Question b. Calculate the income tax expense.

Question c. Calculate the net income.