The general ledger of the Fly-By-Night (FBN) Engineering Company contained the f

ID: 1860649 • Letter: T

Question

The general ledger of the Fly-By-Night (FBN) Engineering Company contained the following account balances.

Administrative Expenses = $3,300

Subcontracted Services = $15,000

Development Expenses = $800

Interest Expense = $300

Sales Revenue = $40,000

Selling Expenses = $5,500

What is the net income before taxes and the net profit (or loss) after taxes? Assume a tax rate of 27%.

1) Net Income Before Taxes = $15,300

Net Profit After Taxes = $11,369

2) Net Income Before Taxes = $11,023

Net Profit After Taxes = $15,100

3) Net Income Before Taxes = $15,100

Net Loss After Taxes = ($11,023)

4) Net Income Before Taxes = $15,100

Net Profit After Taxes = $11,023

2) Net Income Before Taxes = $11,023

Net Profit After Taxes = $15,100

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