During the year,The Mane Event,Inc.had sales of $300,000 and had expenses of $240,000.The owners were paid $20,000 in dividends.Net income for the year equals ________.
A)$90,000
B)$60,000
C)$50,000
D)$40,000

Question

Quizplus · Accepted Answer

Net income is calculated as sales minus expenses. Therefore, $300,000 (sales) - $240,000 (expenses) = $60,000. Dividends do not affect the calculation of net income.

During the Year,The Mane Event,Inc