Use the Following Information for the Following Questions:
Sesame

question 21

Multiple Choice

Use the following information for the following questions:
Sesame Corp.'s adjusted trial balance at December 31, 2020, included the following:
$\begin{array}{c}\begin{array}{lll}\\\text {Sales......................................................................}\\\text {Cost of goods sold..................................................}\\\text {Administrative expenses........................................}\\\text {Loss on sale of equipment.......................................}\\\text {Sales commissions..................................................}\\\text {Interest revenue.....................................................}\\\text {Loss of warehouse due to flood...............................}\\\text {Loss from operation of discontinued division.........}\\\text {Bad debt expense....................................................}\\\text {Totals.....................................................................}\end{array}\begin{array}{lll}\underline{\text {Debit}}\\\\\$ 70,000 \\28,000 \\11,000 \\9,000\\\\15,000 \\24,000 \\\underline{5,000} \\\underline{ \$ 162,000 }\\\end{array}\begin{array}{lll}\underline{\text {Credit}}\\\$170,000\\\\ \\ \\\\6,000\\ \\ \\\underline{\quad\quad} \\\underline{ \$ 176,000 }\\\end{array}\end{array}$

Sesame uses the perpetual system, and their income tax rate is $30 \%$ .
-On Sesame's multiple-step income statement for 2020, income from continuing operations is

• A) $17,500.
• B) $52,800.
• C) $24,500.
• D) $26,600.

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Definitions:

True Coelom

A body cavity completely lined by mesoderm, found in most multicellular animals, facilitating the development of more complex structures.

Open Circulatory System

A type of circulatory system in which the blood bathes the tissues directly; characteristic of arthropods and many mollusks. Compare with closed circulatory system.

Arthropods

Invertebrate animals having an exoskeleton, a segmented body, and paired jointed appendages, including insects, arachnids, and crustaceans.

Exclusively Marine

Referring to organisms or features that are found only in the oceanic environment, not in fresh water or on land.