3) Which of the following is an underlying assumption of GAAP? A) Going concern. B) Historical cost. C) Full disclosure. D) Realization. 4) The balance sheet reports: A) Net income at a point in time. 5) B) Cash flows for a period of time. C) Assets and equities at a point in time. D) Assets and liabilities for a period of time. Alpaca Corporation had revenues of $270,000 in its first year of operations. The company has not collectedon $20,000 of its sales and still owes $26,000 on $95,000 of merchandise it purchased. The company had no inventory on hand at the end of the year. The company paid $13,500 in salaries. Owners invested $29,000 in the business and $29,000 was borrowed on a five- year note. The company paid $4,400 in interest that was the amount owed for the year, and paid $6,800 for a two-year insurance policy on the first day of business. Alpaca has an effective income tax rate of 40%. Compute net income for the first year for Alpaca Corporation. A) $92,220 B) $153,700 C) $103,680 D) $175,000