Compute the Income Tax Expense; Service Revenues $$ =\$ 200,000 $$, Rent Expense $$ =\$ 30,000 $$, Equipment $$ =\$ 40,000 $$ Salary Expense $$ =\$ 50,000 $$, Inventory $$ =\$ 22,000 $$, Income Tax Rate $$ =30 \% $$. 120,000 36,000 60,000 80,000 24,000

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**Step 1: Identify Relevant Amounts**

- Service Revenues: $$200,000$$
- Rent Expense: $$30,000$$
- Salary Expense: $$50,000$$

Note: Equipment ($$40,000$$) and Inventory ($$22,000$$) are assets and not considered expenses for this calculation.

---

**Step 2: Compute Operating Income**

$$
\text{Operating Income} = \text{Service Revenues} - (\text{Rent Expense} + \text{Salary Expense})
$$
$$
= 200,000 - (30,000 + 50,000)
$$
$$
= 200,000 - 80,000 = 120,000
$$

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**Step 3: Compute Income Tax Expense**

Given an Income Tax Rate of $$30\%$$:

$$
\text{Income Tax Expense} = \text{Operating Income} \times 30\% = 120,000 \times 0.30 = 36,000
$$

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**Final Answer:**

$$
\boxed{36,000}
$$
The Income Tax Expense is \$36,000.

Compute the Income Tax Expense; Service Revenues \( =\$ 200,000 \), Rent Expense \( =\$ 30,000 \), Equipment \( =\$ 40,000 \) Salary Expense \( =\$ 50,000 \), Inventory \( =\$ 22,000 \), Income Tax Rate \( =30 \% \). 120,000 36,000 60,000 80,000 24,000

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