The Sarver Farm has completed the fall harvest with 50,000 bushels of premium wheat. The wheat cost $75,000 from planting to harvest and the market price of the wheat on the day it is placed in the silo is $2.50 per bushel. Sarver sells 42,000 bushels in Year 1 and holds the remaining 8,000 until Year 2 when it sells for $3.00 per bushel.

Using the completed transaction (sales) method, how much net income should Sarver recognize in Year 1?

		$125,000
		$42,000
		$105,000
		$50,000