Rouge Companys $263,000 net income for the quarter ended September 30 included the following after-tax items:

• A $28,500 cumulative effect loss resulting from a change in inventory valuation method made on September 1.
• $0 of the $73,000 annual property taxes paid on February 1.

For the quarter ended September 30, the amount of net income that Rouge should report is

Multiple Choice

• $291,500.

• $273,250.

• $263,000.

• $244,750.