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CONCEPTS IN FED.TAX.,2020-W/ACCESS

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter3: Income Sources

Section: Chapter Questions

Problem 79P

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General accounting

Jacob started a business with the following transactions:
1. Invested $20,000 into the business.
2. Purchased supplies worth $2,000 on account.
3. Sold goods for $10,000; these goods cost $6,000.
4. Paid salaries of $1,000.
What is Jacob's net income after these transactions?
A) $3,000
B) $4,000
C) $2,000
D) $1,000

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