Smith Co. purchased inventory for $5,000 on account with the freight terms FOB destination. Smith Co. then sold the inventory to customers for $8,000 cash with freight terms FOB shipping point. In both cases, the freight carrier charged $600 for shipping. Based on this information Multiple Choice gross margin would be $2,400. net income would be $3,000. net income would be $1,800. None of the answers are correct.