During the course of your examination of the financial statements of the Hales Corporation for the year ended December 31, 2016, you discover the following:

A) Hales borrowed $22,000 from a local bank on October 1, 2016. Principal and interest at 12% will be paid on September 30, 2017. No accrual was recorded for interest.

Determine the proper amount of net income for 2016. (Amounts to be deducted should be indicated by a minus sign.)