Preferred stock is traded in the money market, while common stock is traded in the capital market

Consider the overall effects on Global Cleaning Service from selling and performing services on account for $6,400 and paying expenses totaling $2,500. What is Global Cleaning Services net income or net loss?

a. Net income of $3,900 b. Net loss of $3,900 c. Net income of $6,400 d. Net income of $8,900

On January 1, 2017, Finch Company issued $74,000 of five-year, 8% bonds when the market interest rate was 12%. The issue price of the bonds was $62,000. Finch uses the effective-interest method of amortization for bond discount. Semiannual interest payments are made on June 30 and December 31 of each year. How much interest expense will be recorded when the first interest payment is made? (Round your answer to the nearest dollar number.)

A) $2,480 B) $3,720 C) $2,960 D) $4,440