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BROWN COMPANY REPORTED THE FOLLOWING DATA WITH REGARD TO ITS FIRST QUARTER OPERATIONS: SALES REVENUE - $180,000 INTEREST REVENUE - $3,000 GAIN ON SALE OF
BROWN COMPANY REPORTED THE FOLLOWING DATA WITH REGARD TO ITS FIRST QUARTER OPERATIONS: SALES REVENUE - $180,000 INTEREST REVENUE - $3,000 GAIN ON SALE OF MACHINE - $7,500 COST OF GOODS SOLD - $67,500 SALARIES AND WAGES - $12,000 DECLINE IN INVENTORY, LCM (TEMPORARY) - $5,500 ANNUAL PROPERTY TAX - $4,500 THE EXPECTED ANNUAL INCOME TAX RATE IS 40%. BROWN CO. SHOULD REPORT NET INCOME ON THE FIRST QUARTER FINANCIAL STATEMENTS OF: A) $-0- B) $61,425 C) $63,225 D) $65,925
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