✏️Single-Step Income Statement with Ta🟢

Responses

1. 

   ISHA CHUGH 22 July 2026

   Can you please how you get Pretax income $1,015,000.

   1. 

      Christopher Zogheib 24 July 2026

      Same question
      3,192000-638,250=639,000 rather than 1,015,000
      I was curious if it was a + rather than – when you calculated to get the wrong answer but that would have needed a value of 268750 to flip and nothing fits that. The digits adds up to 28, not divisible by 9 so not a transposition error along with a flipped arithmetic sign. The full variance of 537,500 also does not have digits adding to a number divisible by 9 so that wasn’t a transposition error either. It seems like there may be a bad value in the back end solution calculation.

      1. 

         Maroun, CPA 25 July 2026

         Hi Isha and Christopher,

         You are correct. The $1,015,000 pretax income in the detailed solution was caused by an error in the backend calculation.

         The correct computation is:
         Total revenues: $3,150,000 + $42,000 = $3,192,000
         Total expenses before income tax: $1,890,000 + $340,000 + $265,000 + $58,000 = $2,553,000

         Therefore, pretax income is:
         $3,192,000 − $2,553,000 = $639,000

         Income tax expense = $639,000 × 25% = $159,750

         Net income = $639,000 − $159,750 = $479,250

         Earnings per share = $479,250 ÷ 90,000 = $5.33

         Christopher, your conclusion of $639,000 is correct, although the subtraction should be $3,192,000 − $2,553,000, rather than $3,192,000 − $638,250.

         We will update the exercise.
         Thank you for bringing this to our attention!

   2. 

      Maroun, CPA 25 July 2026

      Hello Isha,

      The pretax income of $1,015,000 is incorrect.
      We will update the exercise.
      Thank you for bringing this to our attention!

2. 

   Sazia Surovi 23 July 2026

   How ccould the pretax inciome is 1015000?

   1. 

      Maroun, CPA 25 July 2026

      Hello Sazia,

      The pretax income of $1,015,000 is incorrect.
      We will update the exercise.
      Thank you for bringing this to our attention!

3. 

   Harikrishna Patel 27 July 2026

   Can you please explain how the figures for the following accounts are as they are because for Income Tax I calculated 159,750. For Total expenses I have 2712750. For Net Income I have 479250. Lastly My EPS is 5.3. However the answer is saying that my figures for these accounts are incorrect. Can you please explain why and the correct answer would be.

   1. 

      Maroun, CPA 28 July 2026

      Hi Harikrishna,

      The pretax income of $1,015,000 is incorrect. The correct computation is:
      Total revenues: $3,150,000 + $42,000 = $3,192,000
      Total expenses before income tax: $1,890,000 + $340,000 + $265,000 + $58,000 = $2,553,000

      Therefore, pretax income is:
      $3,192,000 − $2,553,000 = $639,000

      Income tax expense = $639,000 × 25% = $159,750

      Net income = $639,000 − $159,750 = $479,250

      Earnings per share = $479,250 ÷ 90,000 = $5.33

      We will update the exercise.
      Thank you for bringing this to our attention!