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Problem 1: In June, Kipper Ltd. received a $6,000 cash payment for work billed the previous month. The company replanted a clear-cut area of northern Alberta for which it sent out an invoice for $25,000. At the beginning of the month the company had $2,000 of trees for planting. During the month the company purchased $4,000 more, and at the end of the month it was left with trees that had cost $1,000. The company's expenses were $1,000 in rent for its office and $3,000 in other expenses. Amortization on the truck and office equipment was calculated to be $500. The income tax rate is 10%. Net Income for the company for the month of June was
Select one:
a. $13,950b. $19,350c. none of the listed answers are correctd. $9,900
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