Johnny's Car Repairs had total assets of $60,000 and total liabilities of $40,000 at the beginning of the year. During the year the business recorded $100,000 in revenues and $55,000 in expense. The profit reported by Johnny's Car Repairs for the year was:

a.

$40,000

b.

$60,000

c.

$45,000

d.

$20,000