Astoria Co. had the following transactions during the month of August 2014:

* Cash received from bank loans was $20,000.

* Dividends of $9,500 were paid to stockholders in cash.

* Revenues earned and received in cash amounted to $33,500.

* Expenses incurred and paid were $26,000.

What amount of net income will be reported on an income statement for the month of August?

$20,000.

$7,500.

$0.

$33,500.