Alpaca Corporation had revenues of $280,000 in its first year of operations. The company has not collected on $18,600 of its sales and still owes $25,700 on $95,000 of merchandise it purchased. The company had no inventory on hand at the end of the year. The company paid $15,000 in salaries. Owners invested $23,000 in the business and $23,000 was borrowed on a five-year note. The company paid $2,600 in interest that was the amount owed for the year, and paid $7,900 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