The following is selected information from L Corporation for the fiscal - 17185

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The following is selected information from L Corporation for the fiscal year ending October 31, 2011.

Cash received from customers    $300,000
Revenue earned    370,000
Cash paid for expenses    170,000
Cash paid for computers on November 1, 2010 that will be used for 3 years    48,000
Expenses incurred including any depreciation    216,000
Proceeds from a bank loan, part of which was used to pay for the computers    100,000

Based on the accrual basis of accounting, what is L Corporation’s net income for the year ending October 31, 2011?
     $154,000
     $170,000
     $152,000
     $184,000
                                      

Solution Description

 

The following is selected information from L Corporation for the fiscal year ending October 31, 2011.

 

Cash received from customers           $300,000

Revenue earned