On January 1, Year 1, Jing Company Purchased Office Equipment

Multiple Choice

On January 1, Year 1, Jing Company purchased office equipment that cost $34,125 cash. The equipment was delivered under terms free on board (FOB) shipping point, and transportation cost was $2,125. The equipment had a five-year useful life and a $12,070 expected salvage value.Assume that Jing Company earned $30,100 cash revenue and incurred $19,100 in cash expenses in Year 3. The company uses the straight-line method. The office equipment was sold on December 31, Year 3 for $16,200. What is the company's net income (loss) for Year 3?

A) ($6,642)
B) $6,642
C) $622
D) $5,458