Can u explain the answer

Trial Balance Dec. 31, 2013 Debit Credit Cash $80,000 Accounts Receivable $120,000 Inventory $70,000 Prepaid Expenses $50,000 Equipment $100,000 Building $200,000 Land $150,000 Accounts Payable $90,000 Wages Payable $60,000 Unearned Revenue $75,000 Notes Payable $160,000 Stock $110,000 Retained Earnings $180,000 Sales $600,000 COGS $400,000 Wages Expense $30,000 Income Tax Expense $40,000 Rent Expense $10,000 Depreciation Expense $25,000 Total $1,275,000 $1,275,000 What is the company's net income for 2013? A. $45,000 B. $95,000 C. $120,000 D. $170,000 Answer: B