On January 1, Loyal Corp. began operating a service company with an initial cash investment by shareholders of $2,000,000. The company provided $6,400,000 of services in January and received full payment in February. Royal also incurred expenses of $3,000,000 in January that were paid in March. During January, Loyal paid its shareholders cash dividends of $1,000,000. What was the company's income before income taxes for the two months ended February 28 under the following methods of accounting?

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To determine Loyal Corps income before income taxes for the two months ended Febr... View the full answer