For the year ending December 31, 2020, income from continuing operations before-tax was $875,000 before considering the following transactions and events. All items below are presented before taxes and should be considered material. The tax rate is 30%. In December, the company sold a warehouse for $34,000. 

The warehouse was originally purchased for 66,000, and had been depreciated $21,000 to date. At year end, the company discovered it had mistakenly reported both sales revenue and commission revenue from inventory it sold as a consignee on behalf of a consignor for the last three years. Revenue from consignment sales totaled $60,000 in 2018, $110,000 in 2019 and $180,000 in 2020. 

The 2020 amount is included in the income from continuing operations amount above. The company shifted its strategy towards growing its west coast business. As a result, the company began to sell off its East Coast division during the year and netted a $36,000 loss. 

The East Coast division reported income from operations during the year of $380,000. Historically, the company had determined that warranty costs amounted to approximately 4% of sales revenue, and as a result $50,000 of warranty expense is included in the income from continuing operations above. At year end, the company updated its analysis and adjusted this percentage to 3% or $37,500 of warranty expense. 

Determine Net Income for the year ended December 31, 2020 and enter your answer in the box.

Answer rating: 100% (QA)

NET INCOME FOR THE YEAR ENDED 31ST DECEMBER2021 PARTICULARS AMT AMT ... View the full answer