How much was Colby's net income?A) $46,800.B) $39,100.C) $48,300.D) $52,700.

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Destiny Diamond · Accepted Answer

Final Answer : A, Explanation :  Net income is calculated by taking the operating revenues and subtracting operating expenses, interest expense, and income tax expense, then adding the gain from the sale of plant and equipment. The calculation is as follows: $199,700 (operating revenues) - $111,000 (operating expenses) - $9,200 (interest expense) - $36,000 (income tax expense) + $3,300 (gain from sale) = $46,800. Dividend payments and prepaid rent are not included in the calculation of net income.

How much was Colby's net income?

A) $46,800.
B) $39,100.
C) $48,300.
D) $52,700.

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