Amarillo Company experienced the following events during its first accounting period.

1. (1) Purchased $5,000 of inventory on account.
2. (2) Returned $1,000 of the inventory purchased in Event 1.
3. (3) Paid the remaining balance in accounts payable for the inventory purchased in Event 1.
4. (4) Sold inventory purchased in Event 1 for $5,000 to customers on account.

At the end of the first accounting period what would be reported on the Income Statement for net income?

A. $1,000

B. $4,000

C. $5,000

D.Zero