Yowell Company Began Operations on January 1, Year 1

Multiple Choice

Yowell Company began operations on January 1, Year 1. During Year 1, the company engaged in the following cash transactions: 1) issued stock for $80,0002) borrowed $65,000 from its bank3) provided consulting services for $78,0004) paid back $35,000 of the bank loan5) paid rent expense for $19,0006) purchased equipment costing $32,0007) paid $5,000 dividends to stockholders8) paid employees' salaries for work completed during the year, $41,000What is Yowell's net income?

A) $40,000
B) $18,000
C) $14,000
D) $59,000