Reference no: EM132755280

Vane Co.'s trial balance for the year ended December 31, 20X3, included the following:

                                      Debit                   Credit

Sales                             -------         $575,000

Cost of sales                240,000            ----------

Administrative expenses  70,000              ----------

Loss on sale of equipment  10,000               ----------

Sales commissions               50,000           ----------

Interest revenue             ---------         25,000

Freight out                       15,000             -----------

Loss on early retirement of

long-term debt                 20,000              ------------

Uncollectible accounts expense 15,000            -------------

Totals                                  $420,000                 $600,000

Other information

Finished goods inventory:

January 1, 20X3 $400,000 -------------

December 31, 20X3 360,000 ------------

Problem 1: Vane's income tax rate is 30%. In Vane's 20X3 multiple-step income statement, what amount should Vane report as income after income taxes from continuing operations?

A. $126,000

B. $129,500

C. $140,000

D. $147,000