On December 31, 2019, The Bates Company's revenue is $320,000 and expenses total $200,000 before consideration of the following:

Accrued wages total $12,000;

Accrued revenues total $38,000;

Depreciation expense is $18,000;

Rental revenue of $6,000 was earned; the rent from a tenant was initially recorded by Bates as unearned rent revenue;

The income tax rate is 40% of income before income taxes.

What is Bates' net income after consideration of the above information?

Multiple Choice

• $80,400.

• $76,800.

• $120,000.

• $134,000.