?

Financial Accounting

Free Version

Upgrade subject to access all content

Moderate

Income Statement : Income Before Income Taxes

FINACT-YGV9SL

Red Brick Company provides the following adjusted trial balance information at year-end:

Account Titles Adjusted Trial Balance
Debits Credits
Cash \$10,950
Accounts Receivable 95,000
Accounts Payable \$5,000
Unearned Revenue 4,500
Common Stock 35,500
Retained Earnings 42,000
Fees Revenue 38,000
Interest Revenue 3,000
Salaries Expense 11,500
Depreciation Expense 6,500
Income Tax Expense 2,300
Interest Expense 1,750
Totals \$128,000 \$128,000


Using the multi-step Income Statement format, how much is Income Before Income Taxes for the year?

A

\$25,750

B

\$21,250

C

\$20,000

D

\$18,950