Santos Corporation gathered the following information for the fiscal year ended December 31, 2020: Sales $1,500,000 Operating expenses 160,000 Cost of goods sold 960,000 Loss on disposal of equipment 40,000 Santos Corporation is subject to a 30% income tax rate. Prepare a partial income statement, beginning with income from operations.

Income from operations    380,000

Loss on sale of equipment  40,000

Pretax income                    340,000

Tax at 30%                          102,000

Net Income                         238,000

Explanation:

1          Santos Corporation

         Income statement

For the year ended December 31, 2020

Sales $1,500,000

less: Cost of goods sold $960,000

Gross Profit                      $540,000

Less: Operating expenses 160,000

Income from operations    380,000

2          Santos Corporation

             Income statement

For the year ended December 31, 2020

Income from operations    380,000

Loss on sale of equipment  40,000

Pretax income                    340,000

Tax at 30%                          102,000

Net Income                         238,000

hi : ) i found this so i hope this !

"we first find value of tax in dollars.

the difference between the two prices   is: 23. 54 - 22 = 1.54

therefore the sales tax in dollars is 1.54

the tax % will be   (amount of tax / original cost price ) × 100

(1.54 / 22) × 100  → (0.07) × 100 =   7

so the tax rate is 7%

we can double check the answer.

7 % of 22   → (7/100) × 22 → 0.07 × 22 = 1.54

22 + 1.54 = 23.54"

answer; erp systems;