The following question is based on the following:Vane Co.'s trial balance of income statement accounts for the year ended December 31, Year 1, included the following: | Debit | Credit |
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| Sales | | $ 575,000 | | Cost of sales | $ 240,000 | | | Administrative expenses | 70,000 | | | Loss on sale of equipment | 10,000 | | | Sales commissions | 50,000 | | | Interest revenue | | 25,000 | | Freight out | 15,000 | | | Loss on early retirement of long-term debt (unusual & infrequent item) | 20,000 | | | Uncollectible accounts expense | 15,000 | | | Total | $ 420,000 | $ 600,000 |
Other information
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Finished goods inventory: | | January 1, Year 1 | $400,000 | December 31, Year 1 | $360,000 |
Vane's income tax rate is 30%.In Vane's Year 1 multiple-step income statement, what amount should Vane report as income from continuing operations?
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a. | $126,000 | |
b. | $140,000 | |
c. | $129,500 | |
d. | $147,000 |
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