Alpaca Corporation had revenues of $250,000 in its first year of operations. The company has not collected on $18,600 of its sales and still owes $26,700 on $75,000 of merchandise it purchased. The company had no inventory on hand at the end of the year. The company paid $13,000 in salaries. Owners invested $20,000 in the business and $20,000 was borrowed on a five-year note. The company paid $4,800 in interest that was the amount owed for the year, and paid $6,000 for a two-year insurance policy on the first day of business. Alpaca has an effective income tax rate of 30%. Compute net income for the first year for Alpaca Corporation.

Multiple Choice

$ 107,940

$ 154,200

$ 175,000

$ 118,840