Montana Corp. had revenues of $250,000 in its first year of operations. The company had no inventory on hand at the end of the year. The company has not collected on $19,400 of its sales and still owes $25,600 on $75,000 of merchandise it purchased. The company paid $12,500 in salaries. Owners invested $24,000 in the business and $24,000 was borrowed on a five-year note. The company paid $4,700 in interest that was the amount owed for the year, and paid $7,900 for a two-year insurance policy on the first day of business. Montana has an effective income tax rate of 20%. Compute net income for the first year for Montana Corp. $123,080 $203,850 $153.850 $163.080