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Mel’s Mechanical Repair Shop started the year with total assets of $60,000, total liabilities of $40,000, and retained earnings of $18,000. During the year, the business recorded $100,000 in auto repair revenues, $70,000 in expenses, and the company paid dividends of $15,000. The net income reported by Mel’s Mechanical Repair Shop for the year was:
B. $ 40,000
C. $ 50,000
D. $ 30,000
E. None of the above
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