Shown below is an adjusted trial balance for Novelty Toys, Incorporated, on December 31, Year 1:

Novelty Toys, Incorporated
Adjusted Trial Balance
December 31, Year 1
	Debit	Credit
Cash	$ 16,000
Accounts Receivable	13,000
Office Equipment	23,500
Accumulated Depreciation		$ 6,500
Accounts Payable		8,000
Capital Stock		23,000
Retained Earnings		-0-
Dividends	8,000
Fees Earned		48,000
Salaries Expense	17,000
Advertising Expense	3,500
Depreciation Expense	4,500
Totals	$ 85,500	$ 85,500

The Income Summary will have what balance before it is closed?

Multiple Choice

• $23,000.

• Zero.

• $23,550.

• $23,800.