1. Brinkman's General Store had the following transactions during the current year: $500,000 Sales generated for the year on credit (85% have been collected at year end) Borrowed a short-term loan from the bank Interest incurred but not yet paid on the loan Bought inventory for resale Depreciation expense on building Operating expenses Cost of inventory sold Paid suppliers for inventory Accounts payable, ending balance Tax rate 50,000 5,000 40,000 10,000 50,000 375,000 15,000 10,000 40% Net income reported for the year is: a) $65,000 b) $36,000 c) $60,000 d) $20,000