Rodrigues Inc.a construction company,recorded a gross profit of $12,000.Its operating expenses stood at $2,000.The amount of depreciation was calculated to be $3,000.Rodrigues paid out $2,500 in income taxes.Which of the following figures captures Rodrigues' bottom line?

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Quizplus · Accepted Answer

To calculate Rodrigues' bottom line, or net income, we start with the gross profit of $12,000, subtract operating expenses of $2,000, and depreciation of $3,000. This gives us $7,000. Then, subtracting the income taxes of $2,500 gives us a bottom line of $4,500.