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?

Griffin net income for the years amounts to $34,000

Explanation:

The formula to compute the net income for the year is computed as:

Net Income for the year = Total Revenues - Total Expense

where

Total Revenues = Taxable Income + Interest received

= $55,000 + $1,000

= $56,000

Total Expense = Income tax expense + Penalties + Meals with client

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

= $22,000

Putting the values above:

= $56,000 - $22,000

= $34,000

statement of owner's equity;

answer; situational irony;