Answer:
$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
