A companys financial records at the end of the year including the following amounts:

Cash	$	70,800
Accounts receivable		28,800
Supplies		4,800
Accounts payable		10,800
Notes payable		5,400
Retained earnings, beginning of year		17,800
Common stock		48,000
Service revenue		47,800
Wages expense		8,800
Advertising expense		5,800
Rent expense		10,800

What is the amount of net income on the income statement for the year?

$40,200.

$22,400.

$90,000.

$31,200.