During August, 2018, Baxter's Supply Store generated revenues of $60,000. The company's expenses were as follows: cost of goods sold of $36,000 and operating expenses of $4,000. The company also had rent revenue of $1,000 and a gain on the sale of a delivery truck of $2,000. Baxter's net income for August, 2018 is

Question

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Net income is calculated as total revenues minus total expenses. Baxter's total revenues are $60,000 (sales revenue) + $1,000 (rent revenue) + $2,000 (gain on sale) = $63,000. Total expenses are $36,000 (cost of goods sold) + $4,000 (operating expenses) = $40,000. Therefore, net income is $63,000 - $40,000 = $23,000.

During August, 2018, Baxter's Supply Store Generated Revenues of $60,000