Blank Company manages the farm payroll of ABC Company. Blank receives a fee of $200 per year for each employee on ABCs payroll, less the salary of ABCs bookkeeper, who works full-time on administrative matters. ABC Company is the primary obligor for the bookkeepers salary. Last year, ABC had 1,000 employees on its payroll and the bookkeepers salary (which was paid by ABC) was $60,000. Blanks rent expense for the year was $20,000 and utilities were $10,000.

1) What is the amount of revenue that Blank Company should report on its income statement for last year in terms of EITF 01-14?

2) What was Blank Companys operating income for last year (ignoring taxes)?