Kyla's Physio Corp. (KPC) reported revenues of $225,000 and expenses of $145,000 on its unadjusted trial balance at its December 31, 20X7, year end. Other pertinent facts follow:

Adjusting entries including accruals and deferrals are only recorded at year end.

On January 1, 20X7, KPC purchased equipment for $10,000. This is being depreciated on a straight-line basis over five years with no residual value.

On July 1, 20X7, KPC purchased a $1,200 one-year insurance policy and debited prepaid expenses for this amount at time of purchase.

KPC is normally billed for its utilities on the 17th of the month. The company estimates that it consumed $300 of utilities from December 18 to 31.

KPC earned $1,100 interest revenue on a note receivable during the year. The note, together with accrued interest, will be paid in full next year.

On September 1, 20X7, KPC received $2,400 cash in advance for agreeing to provide 20 physiotherapy sessions to its client at a later date. This amount was credited to unearned service revenue. KPC provided 15 sessions to its client by December 31, 20X7.

What was KPC's net income for its year ended December 31, 20X7?

a) $78,200

b) $78,900

c) $80,000

d) $82,000