The Income Summary Account Has Debits of $85,000 and Credits

question 63

Multiple Choice

The Income Summary account has debits of $85,000 and credits of $75,000.The company had which of the following:

• A)Net income of $10,000.
• B)Net income of $160,000.
• C)Net loss of $10,000.
• D)Net loss of $160,000.

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Definitions:

Single Life Annuity Contract

A Single Life Annuity Contract is an annuity that pays out a fixed or variable income stream to an individual for their lifetime, with payments ceasing upon their death.

Expected Return

The forecasted amount of profit or loss from an investment over a specific period.

Nondeductible Contributions

are contributions made to certain retirement accounts or plans that cannot be deducted from the taxpayer's income.

Taxable Portion

The segment of income, withdrawals, or distributions subject to taxation, after accounting for exemptions, deductions, or pre-tax contributions.