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Smith Company sold inventory that cost $ 5 , 0 0 0 for $ 9 , 0 0 0 cash. Freight cost was $ 6

Smith Company sold inventory that cost $

5, 000

for $

9, 000

cash. Freight cost was $

600

paid in cash. The freight terms were FOB destination. Based on this information,

Multiple Choice:

gross margin would be $

3, 400 .

net income would be $

3, 400 .

net income would be $

4, 000 .

None of the answers are correct.

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