Answer:
($8000)
Explanation:
Given :
Cost of good sold = $60,000
Gross margin = $42,000
Operating income = $12,000
Loss on land sale = $20,000
Given a multistep income statement;
The net profit or (loss) is obtained by the difference in loss due to land sale and the operating income ;
The net profit(loss) = Operating income - Loss on land sale
The net profit (loss) = $12,000 - $20,000 =($8000)
Since, loss on lab sale is greater than operating income, then it is a loss
