Newton Corporation entered into the following transactions during its first year of operations. (Assume all transactions involve cash.) 1) Acquired $2,000 of capital from the owners. 2) Purchased $600 of direct raw materials. 3) Used $400 of these direct raw materials in the production process. 4) Paid production workers $800 cash. 5) Paid $400 for manufacturing overhead. 6) Started and completed 200 units of inventory. 7) Sold 50 units at a price of $12 each. 8) Paid $80 for selling and administrative expenses.

The amount of net income for the year was:

$100.

$75.

$50.

$120.