Question: Can you explain the correct approach to solve this general accounting question? Baxter Inc. had the following transactions during the month of March 2023: Cash

Can you explain the correct approach to solve this general accounting question?

Can you explain the correct approach to solve
Baxter Inc. had the following transactions during the month of March 2023: Cash received from issuing common stock was $85,000. Wages of $25,000 were paid to employees in cash. Service revenue earned and received in cash amounted to $120,000. Rent and utility expenses paid were $35,000. What amount of net income will be reported on an income statement for the month of March? A. $120,000 B. $85,000 C. $60,000 D. $25,000

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