Smith Company purchased inventory for $5000 on account. Freight cost was $600 paid in cash. The Freight terms were FOB destination. The inventory was sold to customers for $8000. Freight cost was $600 paid in cash. The freight terms were FOB shipping point. Based on this information,

A. Gross margin would be $2400

B. Net income would be $3000

C. Net income would be $1800

D. None of the answers are correct.