The company sells custom-designed engineering equipment. During the most recent year, the company received the following customer orders:
For Machine A, selling price = $125,000, production cost = $67,000
For Machine B, selling price = $235,000, production cost = $140,000
For Machine C, selling price = $72,000, production cost = $41,000
For Machine D, selling price = $370,000, production cost = $150,000
Machines A and C were completed and shipped during the year; the total revenue from the sale of these machines will be reported in the income statement for the year. Machines B and D have not yet been completed; the total production cost incurred so far for these two machines is $240,000. The revenue from the sale of these two machines will not be reported in the income statement for the year. Using the transaction approach (the matching method), compute the company’s income for the year.