Based on the following information for the year ended...

Based on the following information for the year ended December 31, 2018, what is the dollar amount of Income Tax Expense? Retained Earnings $ 340,000 January 1, 2018 Cost of Goods Sold $ 620,000 Cash dividends declared in 2018 $ 50,000 Operating Expenses $ 170,000 Sales Revenue $1,000,000 Income tax rate 30 % Common stock 10,000 shares outstanding all year

Transcript

00:01 In this video, we're going to be calculating the total net income loss for the following situation.

00:10 So to get started, let's write out our data.

00:20 So we know the total assets.

00:26 Total assets are the beginning of the year and the end of the year.

00:36 Actually we'll abbreviate so so boy beginning of year and end of year okay so the total assets for the beginning of the year is 52 ,400 oops the end of the year is 83 ,000 okay so now we're going to do the total assets total liability so the beginning of the year is 23 ,200 and let's say the end of the year it's 36 ,200 all right so now that we have the this information we want to find the equity right in a different color.

02:19 Equity, which equity is going to be the asset minus liability.

02:39 So equity for the beginning of the year.

02:43 So let's do, this we'll do it over here.

02:48 So equity at the beginning of the year.

02:53 So, equity at the beginning of the year.

02:59 So, really, we'll do it over here.

02:59 So equity at going to take the 54 ,000 minus the 23 200 which is going to be equal to 29 ,200 right and so the equity at the end of the year and it is the same exact thing at the end.

03:37 So we're going to take 83 ,000 minus 36 ,200, which is going to be 46 ,800.

03:55 Okay, so that's how we calculate our equity.

04:06 So to find our net income loss, we're going to say the equity, oops...

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