The AMX Company was started on January 1, 2007.The company incurred the following transactions during the year.(Assume all transactions are for cash unless otherwise indicated.) First, acquired $2,500 by issuing common stock.Second,purchased $700 of direct raw materials.Third,used $500 of these direct raw materials in the production process. Fourth, paid production workers $900 cash. Fifth, paid $800 for manufacturing overhead (assume applied and actual overhead are the same). Sixth, started and completed 100 units of inventory. Seventh, sold 80 units at a price of $30 each. Eighth, paid $400 for selling and administrative expenses.

The amount of net income recognized by AMX in 2007 is $240. How do you find the answer to this question ($240)?