The Income Statement of Peoples Motors Corporation, a U

Multiple Choice

The income statement of Peoples Motors Corporation, a U.S.automotive manufacturer, for the year ended December 31, 20x1, reported revenues of $207,000, cost of sales of $165,000, other operating expenses, including income taxes of $50,000, and net financing income, after taxes, of $6,000. Compute the amount of net income or loss that Peoples Motors reported for 20x1.

A) net income of $0
B) net income of $2,000
C) net loss of $2,000
D) net income of $8,000
E) net loss of $8,000