Ken Young and Kim Sherwood organized Reader Direct as a corporation; each contributed $$41,000$ cash to start the business and received $4,000$ shares of stock. The store completed its first year of operations on December $31,2020.$ On$.$ that date, the following financial items for the year were determined: cash on hand and in the bank, $$36,500$; amounts due from customers from sales of books, $$27,100$; equipment, $$40,000$; amounts owed to publishers for books purchased, $$7,600$; one$-$year notes payable to a local bank for $$3,150.$ No dividends were declared or paid to the stockholders during the year.

$2.$ Using the retained earnings equation and an opening balance of $$0,$ work backwards to compute the amount of net income for the year ended December $31,2020.$