Use This Information to Answer the Following Question If the Income Statement Were Prepared in a Multistep Form,income

Multiple Choice

Use this information to answer the following question. $\begin{array}{c}\text { Alcorn \& Zeto Company}\\\text { Income Statement}\\\text { For the Year Ended December 31, 2010}\\\begin{array}{lrr}\text { Revenues } & \\\text { Net sales } & \$ 100,000 \\\text { Dividend income } &\underline{8,750} \\\text { revenues } &&\$108,750\\\text { Costs and expenses } & \\\text { Costs of goods sold } & \$ 30,000 \\\text { Selling expenses } & 10,000 \\\text { General and administrative expenses } & 13,750 \\\text { Interest expense } & \underline{ 6,250} \\\text { Total costs and expenses } && \underline{60,000} \\\text { before income taxes } && \$ 48,750 \\\text { Income taxes } && \underline{ 19,500} \\\text { Net income } && \underline{ \$ 29,250}\end{array}\end{array}$
If the income statement were prepared in a multistep form,income before income taxes would be

A) $33,750.
B) $52,500.
C) $40,000.
D) $48,750.