During the year ended December 31, 2020, Fields Enterprises purchased inventory for $600. In addition, Fields reported sales of $1,000 during the year. The inventory sold originally cost $500. How will these transactions impact net income of Fields for the year ended December 31, 2020?

1. A)Increase to Net Income of $500
2. B)Increase Net Income of $400
3. C)Decrease Net Income of $100
4. D)Decrease Net Income of $1,100
5. E)None of the answers are correct

Answer rating: 100% (QA)

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