An Internal Service Fund Billed Other Departments $1,200,000 for Services

Multiple Choice

An Internal Service Fund billed other departments $1,200,000 for services provided during the year. Expenses of $700,000 for salaries, $250,000 for supplies and materials used, $100,000 for depreciation, and $100,000 for interest expenses were incurred. The fund received a $42,000 transfer from the General Fund during the year. The Internal Service Fund should report operating income for the year of

A) $50,000.
B) $92,000.
C) $150,000.
D) $192,000.