At the End of Its First Year of Operations, Lockerbie

Multiple Choice

At the end of its first year of operations, Lockerbie and Role Company has total assetsof $3,000,000 and total liabilities of $1,200,000. The owner originally invested$200,000 in the business, but has not made any further investments or taken any withdrawals. What is the first year's net income for Lockerbie and Role Company?

A) $3,200,000.
B) $3,000,000.
C) $1,000,000.
D) $1,800,000.
E) $1,600,000.