[The Following Information Applies to the Questions Displayed Below

question 31

Multiple Choice

[The following information applies to the questions displayed below.]

Riley Company borrowed $36,000 on April 1, Year 1 from Titan Bank. The note issued by Riley carried a one-year term and a 7% annual interest rate. Riley earned cash revenues of $1,700 during Year 1 and $1,400 during Year 2. Assume no other transactions.

-Based on this information alone,what is the amount of net income (loss) that will be reported on the Year 2 income statement?

• A)$770
• B)$630
• C)$(190)
• D)$1,890

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Definitions:

Processor Module

A processor module refers to a self-contained unit within a computer or embedded system that contains a processor and other necessary components for processing data.

Status Indicators

"LEDs that indicate the on-off status of an input or output point and are visible on the outside of the PLC."

Output Module

A hardware component in a PLC that provides the interface and electrical signal conversion to control output devices.