C. $270,000 d. $295,000 An adjusting entry should never include a. a debit to an expense account and a credit to a liability account. 12. b. a debit to an expense account and a credit to a revenue account. c. a debit to a liability account and a credit to revenue account d. a debit to a revenue account and a credit to a liability account. 13. The following information was extracted from the 2017 financial statements of Max $705,000 480,000 495,000 1,350,000 ncome before income tax Net Income Gross profit The amount reported for other expenses and losses is a. $210,000 b. $15,000 C. $165,000 d. $225,000 Lantos Company had a 40 percent tax rate. Given the following pre-tax amounts, what would be the income tax expense reported on the face of the income statement? 14. $ 1,000,000 600,000 Sales revenue Cost of goods sold Salaries and wages expense Depreciation expense Dividend revenue Utilities expense 80,000 110,000 90,000 10,000 20,000 a. $108,000 b. $116,000 c $72,000 d. $36,000 15. Perry Corp. reports operating expenses in two categories: (1) seling and (2) general and administrative. The adjusted trial balance at December 31, 2017 expense accounts: Accourting and legal fees $420,000 360,000 225,000 180,000 90,000 540,000 540,000 405,000 Freight-out Loss on sale of long-term investments Officers' salaries Rent for office space Sales salaries and commissions One-half of the rented premises is occupied by the sales department