Reference no: EM131754448

Question - The following items are taken from the financial statements of Dinkel Company for the year ending December 31, 2010:

Accounts payable $18,000

Accounts receivable 11,000

Accumulated depreciation - equipment 28,000

Advertising expense 21,000

Cash 15,000 15,000

Dinkel, Capital (1/1/10) 102,000

Dinkel, Drawing 14,000

Depreciation expense 12,000

Insurance expense 3,000

Note payable, due 6/30/11 70,000

Prepaid insurance (12-month policy) 6,000

Rent expense 17,000

Salaries expense 32,000

Service revenue 133,000

Supplies 4,000

Supplies expense 6,000

Equipment 210,000

What is the company's net income for the year ending December 31, 2010?

$42,000

$12,000

$133,000

$28,000