Use the Following Information for Questions
Hogan Corp Other Information:
Hogan's Income Tax Rate Is 30

Multiple Choice

Use the following information for questions
Hogan Corp.'s trial balance of income statement accounts for the year ended December 31, 2007 included the following: $\begin{array}{lr}&\text { Debit } & \text { Credit }\\\text { Sales }&&\$140,000\\\text { Cost of sales } & \$ 50,000 \\\text { Administrative expenses } & 25,000 \\\text { Loss on sale of equipment } & 9,000 \\\text { Commissions to salespersons } & 8,000\\\text { Interest revenue }&&5,000\\\text { Freight-out } & 3,000 \\\text { Loss due to earthquake damage } & 12,000 \\\text { Bad debt expense } & 3,000\\\text { Totals }&\$ 110.000 &\$ 145.000\\\end{array}$ Other information:
Hogan's income tax rate is 30%.Finished goods inventory: $\begin{array}{lr}\text { January } 1,2007 & \$ 80,000 \\\text { December } 31,2007 & 70,000\end{array}$ On Hogan's multiple-step income statement for 2007,
-Cost of goods manufactured is

A) $63,000.
B) $60,000.
C) $43,000.
D) $40,000.