Use This Information to Answer the Following Question Gross Margin from Sales Would Be
A) $62,000

Multiple Choice

Use this information to answer the following question. The selected accounts and balances for Keystone Market appear as follows:
$\begin{array}{lr}\text { Advertising Expense } & 14,000 \\\text { Common Stock } & 100,000 \\\text { Dividends } & 21,000 \\\text { Freight-In } & 7,000 \\\text { Freight-Out Expense } & 10,000 \\\text { Interest Income } & 24,000 \\\text { Merchandise Inventory (Jan. 1) } & 70,000 \\\text { Merchandise Inventory (Dec. 31) } & 56,000 \\\text { Purchases } & 60,000 \\\text { Purchases Returns and Allowances } & 4,000 \\\text { Rent Expense } & 9,000 \\\text { Retained Earnings } & 40,000 \\\text { Sales } & 151,000 \\\text { Sales Returns and Allowances } & 19,000 \\\text { Wages Expense } & 32,000\end{array}$ Gross margin from sales would be

A) $62,000.
B) $55,000.
C) $74,000.
D) $68,000.