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Jing Company was started on January 1, Year 1 when it issued common stock for $40,000 cash. Also, on January 1, Year 1 the company purchased office equipment that cost $18,000 cash. The equipment was delivered under terms FOB shipping point, and transportation cost was $2,500. The equipment had a five-year useful life and a $6,500 expected salvage value.

Assume that Jing Company earned $27,000 cash revenue and incurred $17,000 in cash expenses in Year 3. Using straight-line depreciation and assuming that the office equipment was sold on December 31, Year 3 for $10,100, the amount of net income or (loss) appearing on the December 31, Year 3 income statement would be:

-2600

6100

3400

5200