Question

During August of 2018, 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 "nonoperating income" for the month of August is

A. $0
B. $2,000
C. $1,000
D. $3,000

Answer 1

The correct answer is D.

Step-by-step explanation:

Giving the following information:

Non-operating income is the portion of an organization's income that is derived from activities not related to its core business operations.

The company also had a rent revenue of $1,000 and gain on the sale of a delivery truck of $2,000.

Non operating income= 1000 + 2000= 3,000