Newton Corporation entered into the following transactions during its first year of operations. (Assume all transactions involve cash.)1) Acquired $2,000 of capital from the owners.2) Purchased $600 of direct raw materials.3) Used $400 of these direct raw materials in the production process.4) Paid production workers $800 cash.5) Paid $400 for manufacturing overhead.6) Started and completed 200 units of inventory.7) Sold 50 units at a price of $12 each.8) Paid $80 for selling and administrative expenses.The amount of net income for the year was:
A. $75.
B. $50.
C. $120.
D. $100.
Answer: C
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