On January 1, Year 1, Jing Company purchased office equipment that cost $34,500 cash. The equipment was delivered under terms FOB shipping point, and transportation cost was $2,500. The equipment had a five-year useful life and a $11,500 expected salvage value.

Assume that Jing Company earned $32,500 cash revenue and incurred $21,500 in cash expenses in Year 3. The company uses the straight-line method. The office equipment was sold on December 31, Year 3 for $16,500. What is the companys net income (loss) for Year 3?