Alpaca Corporation had revenues of $200,000 in its first year of operations. The company purchased $70,000 of inventory during the year. The company had no inventory on hand at the end of the year. The company paid $15,000 in salaries during the year. Owners invested $20,000 in the business and $20,000 was borrowed on a five year note. The company paid $2,000 in interest that was the amount owed for the year, and paid $6,000 for a two year insurance policy on the first day of business. Alpaca has an effective income tax rate of 40%. The company paid $5,000 in dividends. Which of the following is the net income for the first year for Alpaca Corporation?
| $110,000 | ||
| $60,000 | ||
| $107,000 | ||
| $57,000 | ||
| $61,000 | ||
| $66,000 |