Alpaca Corporation had revenues of $270,000 in its first year of operations. The company has not collected on $18,900 of its sales and still owes $25,300 on $90,000 of merchandise it purchased. The company had no inventory on hand at the end of the year. The company paid $14,000 in salaries. Owners invested $16,000 in the business and $16,000 was borrowed on a five-year note. The company paid $4,000 in interest that was the amount owed for the year, and paid $5,300 for a two-year insurance policy on the first day of business. Alpaca has an effective income tax rate of 40%. Compute net income for the first year for Alpaca Corporation.

$ 159,350

$ 95,610

$ 180,000

$ 108,020