The Sarver Farm Has Completed the Fall Harvest with 50,000

Multiple Choice

The Sarver Farm has completed the fall harvest with 50,000 bushels of premium wheat. The wheat cost $75,000 from planting to harvest and the market price of the wheat on the day it is placed in the silo is $2.50 per bushel. Sarver sells 42,000 bushels in Year 1 and holds the remaining 8,000 until Year 2 when it sells for $3.00 per bushel.
-Using the completed transaction (sales) method,how much net income should Sarver recognize in Year 1?

A) $42,000
B) $50,000
C) $105,000
D) $125,000