Use This Information to Answer the Following Question Gross Margin from Sales Would Be
A) $124,000

Multiple Choice

Use this information to answer the following question. The selected accounts and balances for Pawnee Market appear as follows:
$\begin{array}{lr}\text { Advertising Expense } & 28,000 \\\text { Common Stock } & 200,000 \\\text { Dividends } & 42,000 \\\text { Freight-In } & 14,000 \\\text { Freight-Out Expense } & 20,000 \\\text { Interest Income } & 48,000 \\\text { Merchandise Inventory (Jan. 1) } & 140,000 \\\text { Merchandise Inventory (Dec. 31) } & 112,000 \\\text { Purchases } & 120,000 \\\text { Purchases Returns and Allowances } & 8,000 \\\text { Rent Expense } & 18,000 \\\text { Retained Earnings } & 80,000 \\\text { Sales } & 302,000 \\\text { Sales Returns and Allowances } & 38,000 \\\text { Wages Expense } & 64,000\end{array}$ Gross margin from sales would be

A) $124,000.
B) $110,000.
C) $148,000.
D) $136,000.