Listed below are several transactions that took place during the second and third accounting period (year) of operations for the ABC Corporation: Year 2 Year 3 Amounts billed to customers for services rendered 90,500 102,500 Cash collected from credit customers 62,500 85,000 Cash disbursements: Rent 30,000 Salaries paid to employees for services rendered during the 25,000 35,000 period General expenses (incurred during the period) Advertising 17,500 12,000 6,050 6,750 Additional information: (a) ABC incurred advertising costs of 7,300 in Year 2, owed the advertising agency 1,250 at the end of Year 1, and there were no liabilities at the end of Year 3, (b) there were no anticipated bad debts on receivables, and (c) the rent payment was for a two-year period i.e., Years 2 and 3 (linearly allocated). The net income for Year 3 is: a. 40,250 O b. 36,250 c. None of the given answers is correct. O d. 38,750 e. 38,250