During August, 2015, Baxter's Supply Store Generated Revenues of $60,000

question 43

Multiple Choice

During August, 2015, Baxter's Supply Store generated revenues of $60,000. The company's expenses were as follows: cost of goods sold of $36,000 and operating expenses of $4,000. The company also had rent revenue of $1,000 and a gain on the sale of a delivery truck of $2,000. Baxter's net income for August, 2015 is

• A)$20,000.
• B)$21,000.
• C)$23,000.
• D)$24,000.

---

Definitions:

Title 11

A reference usually to the United States Bankruptcy Code, governing bankruptcy in the United States.

Liquidation Proceedings

Legal processes aimed at winding up a company's operations, selling its assets, and distributing the proceeds among creditors and shareholders.

Paralegals

Professionally trained assistants to lawyers who help in legal research, drafting documents, and other support tasks, but are not qualified to practice law.

Bankruptcy Law

A legal process for individuals or entities that are unable to repay their outstanding debts, providing a framework for asset liquidation or reorganization.