Griffin, Inc. had $55,000 in taxable income and income tax expense of $8,000. During the year Griffin also had $2,000 in penalties, $12,000 in business meals with clients, and $1,000 in interest received from a municipal bond. How much was Griffin’s net income for the year?

$34,000

Explanation:

The formular required to solve the question is:

Net Income for the year = Total Revenues - Total Expense

Total revenue= Taxable income+ interest received

Where,

Taxable income= $55,000

Intereset received= $1,000

Total revenue= $55,000+$1,000

= $56,000

Total expenses= Income tax expense+penalties+meal with clients

Where,

Income tax= $8,000

Penalties= $2,000

Meal with clients= $12,000

Total expenses=$8,000+$2,000+$12,000

=$22,000

Therefore, net income for the year is

= $56,000-$22,000

= $34,000

This, the net income for the year is $34,000