Reference no: EM132530364

Question - The president of MNN Co. has asked you to provide an early estimate of the company's net income after taxes for the fiscal year ended December 31, 20X7. He gave you the following information:

Income statement accounts on the unadjusted trial balance with debit balances total $512,300.

Income statement accounts on the unadjusted trial balance with credit balances total $867,250.

Depreciation expense has not been recorded for the year. Management estimates it will be $58,900.

The property and casualty insurance policy was renewed on November 1, 20X7. Premiums for the year (November 1, 20X7, to October 31, 20X8) were $7,200. The full amount of the premiums was recorded in insurance expense.

The December 31, 20X7, bank statement included bank charges of $125, interest income of $26, and a $17 fee for an electronic transfer, none of which have been recorded in the company's accounting records.

Interest expense must be accrued on the operating line of credit. For the month of December 20X7, this is estimated to be $1,412.

Income tax expense for the year will be $85,200. The expense recorded so far in the accounting records is $79,300.

Based on this information, what will be MNN Co.'s net income after income taxes for the fiscal year ended December 31, 20X7?

a) $215,322

b) $282,622

c) $294,622

d) $306,422