Jimmy's Repair Shop Started the Year with Total Assets of $200,000

Multiple Choice

Jimmy's Repair Shop started the year with total assets of $200,000 and total liabilities of $160,000. During the year the business recorded $420,000 in revenues, $220,000 in expenses, and dividends of $40,000. The net income reported by Jimmy's Repair Shop for the year was

A) $160,000.
B) $200,000.
C) $120,000.
D) $380,000.