Nelson Company experienced the following transactions during year 1, its first year un operation.

1. Issued $7,200 of common stock to stockholders.

2. Provided $3,500 of services on account.

3. Paid $1,900 cash for operating expenses.

4. Collected $2,500 of cash from accounts receivable.

5. Paid a $160 cash dividend to stockholders.

The amount of net income recognized on Nelson Company's Year 1 income statement is:

A. $1,600

B. $1,160

C. $1,000

D. $1,440