On January 1, Year 1, Jing Company purchased office equipment that cost $15,500 cash. The equipment was delivered under terms FOB shipping point, and transportation cost was $1,600. The equipment had a five-year useful life and a $6,000 expected salvage value. Assume that Jing Company earned $19,800 cash revenue and incurred $12,500 in cash expenses in Year 3. The company uses the straight-line method. The office equipment was sold on December 31, Year 3 for $9,800. What is the company's net income (loss) for Year 3?

HINT: Be sure to include depreciation expense for Year 3 in your calculation!

		($1,340)
		$4,260
		$4,440
		$2,740
		None of the above.