The Following Is Selected Information from Motley Corporation for the Fiscal

question 149

Multiple Choice

The following is selected information from Motley Corporation for the fiscal year ending October 31, 2018. $\begin{array}{lr}\text { Cash received from customers } & \$ 300,000 \\\text { Revenue recognized } & 375,000 \\\text { Cash paid for expenses } & 180,000 \\\text { Cash paid for computers on November 1,2017 that will be used } &\\\text { for 3 years (annual depreciation is \( \$ 16,000 \) ) }&48,000\\\text { Expenses incurred, including interest, but excluding any depreciation}& 220,000 \\\text { Proceeds from a bank loan, part of which was used to pay for}\\\text { the computers}&100,000\end{array}$ Based on the accrual basis of accounting, what is Motley Corporation's net income for the year ending October 31, 2018?

• A) $72,000.
• B) $104,000.
• C) $139,000.
• D) $155,000.

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