On January 1, Year 1, Jing Company purchased office equipment that cost $35,250 cash. The equipment was delivered under terms free on board (FOB) shipping point, and transportation cost was $3,250. The equipment had a five-year useful life and a $12,700 expected salvage value. Assume that Jing Company earned $31,000 cash revenue and incurred $20,000 in cash expenses in Year 3. The company uses the straight-line method. The office equipment was sold on December 31, Year 3 for $18,000. What is the company's net income (loss) for Year 3? Multiple Choice ($7,020) $7,020