Consider the following transactions from 1 January 20x1 to 31 December 20x1:

I.Owners invested $8,000 cash to begin the business

II.Provided services for cash, $6,000

III.Provided services on account, $4,000

IV.Paid cash for expenses, $7,500

What is the net income of the business in for year ended 31 December 20x1?

$2,500

$4,500

$6,500

$10,500

None of the above.