Could someone explain/answer/calculate the following:

The following is a single-step income statement for the X. Bonds Company:

X. Bonds Company

Income Statement

For the Year Ended December 31, 2016

Revenues:

Net Sales

$300,000

Interest Income

20,000

Total Revenues

$320,000

Expenses:

Cost of Goods Sold

$60,000

Selling Expenses

25,000

General and Administrative Expenses

30,000

Interest Expense

14,000

Income Tax Expense

45,000

Total Expenses

174,000

Net Income

$146,000

Refer to X. Bonds Company. If the income statement were prepared in a multiple-step format, gross profit would be:

a.$240,000.

b.$260,000.

c.$126,000.

d.$185,000.

2.