On January 1, Year 1, Jing Company purchased office equipment that cost $35,700 cash. The equipment was delivered under terms FOB shipping point, and transportation cost was $3,700. The equipment had a five-year useful life and a $10,300 expected salvage value. Assume that Jing Company earned $38,500 cash revenue and incurred $27,500 in cash expenses in Year 3. The company uses the straight-line method. The office equipment was sold on December 31, Year 3 for $17,700. What is the companys net income (loss) for Year 3?

On January 1, Year 1, Jing Company purchased office equipment that cost $35,700 cash. The equipment was delivered under terms FOB shipping point, and transportation cost was $3,700. The equipment had a five-year useful life and a $10,300 expected salvage value. Assume that Jing Company earned $38,500 cash revenue and incurred $27,500 in cash expenses in Year 3 . The company uses the straight-line method. The office equipment was sold on December 31, Year 3 for $17,700. What is the company's net income (loss) for Year 3 ? Multiple Choice ($5,240) $5,240 $6,760 $940