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Nelson Company experienced the following transactions during year 1, its first year un operation. 1. Issued $7,200 of common stock to stockholders. 2. Provided $3,500
Nelson Company experienced the following transactions during year 1, its first year un operation.
1. Issued $7,200 of common stock to stockholders.
2. Provided $3,500 of services on account.
3. Paid $1,900 cash for operating expenses.
4. Collected $2,500 of cash from accounts receivable.
5. Paid a $160 cash dividend to stockholders.
The amount of net income recognized on Nelson Company's Year 1 income statement is:
A. $1,600
B. $1,160
C. $1,000
D. $1,440
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