During August, 2014, Joe's Supply Store generated revenues of $90,000. The company's expenses were as follows: cost of goods sold of $36,000 and operating expenses of $6,000. The company also had rent revenue of $1,500 and a gain on the sale of a delivery truck of $3,000. Joe's net income for August, 2014 is

Question

Quizplus · Accepted Answer

Net income = Revenues - (Cost of Goods Sold + Operating Expenses)
Net income = $90,000 - ($36,000 + $6,000)
Net income = $48,000
Plus: Rent Revenue + Gain on Sale of Delivery Truck
Net income = $48,000 + $1,500 + $3,000
Net income = $52,500
Therefore, the answer is B, $52,500.

During August, 2014, Joe's Supply Store Generated Revenues of $90,000