Section 1 (3 Marks) (CLO 2] Circle the best answer for the following MCQs, justify your answers by giving a reasonable argument. 1. 1. Sales are $600,000 and the cost of goods sold is $170,000, the gross profit is .a. $770,000 b. $600,000 C. $430,000 d. none of the above. Justification: 12. DANA Co. has current assets of $75,000 and total assets of $150,000. DANA Co. has current liabilities of $80,000 and total liabilities of $100,000. DANA Co's owner's equity is . a. $150.000 b. $100.000 c. $175,000 .d. none of the above. Justification: 1.3. Which of the following is a current liability? a. Accounts payable b. Prepaid insurance c. Accounts receivable d. Equipment Justification