Information for Bach Corporation's first year of operations is presented below:
What was Bach's net income for the year?

Question

Information for Bach Corporation's first year of operations is presented below: 
What was Bach's net income for the year?

Quizplus · Accepted Answer

The net income for the year can be calculated as follows:
Total revenue: $300,000
Total expenses: 
- Cost of goods sold: $120,000
- Depreciation expense: $20,000
- Rent expense: $30,000
- Salaries expense: $50,000
- Interest expense: $10,000
= Total expenses: $230,000

Net income = Total revenue - Total expenses
= $300,000 - $230,000
= $70,000

Therefore, the correct answer is B) $30,000.

Information for Bach Corporation's First Year of Operations Is Presented