QUESTION 17 Candy Company engaged in the following transactions during the current year: 1) Started the business by issuing $8,500 of common stock for cash. 2) The company paid cash to purchase $4,500 of inventory. 3) The company sold inventory that cost $2,500 for $6,500 cash. 4) Operating expenses incurred and paid during the year, $3,100. Candy's gross margin for the year is: a. $7,650. b. $3,650. C. $4,000. d. $1,150. QUESTION 18 Candy Company engaged in the following transactions during the current year: 1) Started the business by issuing $8,500 of common stock for cash. 2) The company paid cash to purchase $4,500 of inventory. 3) The company sold inventory that cost $2,500 for $6,500 cash. 4) Operating expenses incurred and paid during the year, $3,100. Candy's net income for the year is: O $3,800 $3,400 $900 $4,000