During August 2022, 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 2022 is

Question

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Net income is calculated as total revenues minus total expenses. Here, total revenues include sales revenue ($60,000), rent revenue ($1,000), and gain on sale of the truck ($2,000), totaling $63,000. Total expenses include cost of goods sold ($36,000) and operating expenses ($4,000), totaling $40,000. Thus, net income = $63,000 - $40,000 = $23,000.

During August 2022, Baxter's Supply Store Generated Revenues of $60,000