Use This Information to Answer the Following Question If the Income Statement Were Prepared in a Multistep Form,income

question 164

Multiple Choice

Use this information to answer the following question. $\begin{array}{c} \text {Alcorn \& Zeto Company}\\ \text { Income Statement}\\\text {For the Year Ended December 31, 2010}\\\begin{array}{llr} \text { Revenues} &\\ \text {Net sales } &\$100,000\\ \text {Dividend income }& 8,750\\ \text { Total revenues } &&\$108,750\\\text { Costs and expenses } & \\\text { Costs of goods sold } & \$ 30,000\\\text { Selling expenses } & 10,000 \\\text { General and administrative expenses } & 13,750 \\\text { Interest expense } & 6,250 \\ \text { Total costs and expenses } && 60,0000 \\\text { Income before income taxes } && \$48,750 \\\text { Income taxes } && 19,500 \\\text { Net income } && \$ 29,250 \\\end{array}\end{array}$
If the income statement were prepared in a multistep form,income before income taxes would be

• A) $33,750.
• B) $52,500.
• C) $40,000.
• D) $48,750.

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Definitions:

Stroma

The supportive framework of a biological cell, tissue, or organ, or the fluid-filled inner space of chloroplasts in plants.

Thylakoid Compartment

A component within chloroplasts of plants and algae where the light-dependent reactions of photosynthesis take place.

Photosynthetic Product

The chemicals produced by the photosynthetic process, primarily glucose and oxygen, which provide energy and metabolic inputs for plants and other organisms.

Autotroph

Producer. Organism that makes its own food using energy from the environment and carbon from inorganic molecules such as carbon dioxide.