On January 1, Year 1, Jing Company purchased office equipment that cost $35,500 cash. The equipment was delivered under terms free on board (FOB) shipping point, and transportation cost was $3,500. The equipment had a five-year useful life and a $12,840 expected salvage value.

Assume that Jing Company earned $31,200 cash revenue and incurred $20,200 in cash expenses in Year 3. The company uses the straight-line method. The office equipment was sold on December 31, Year 3 for $18,400. What is the companys net income (loss) for Year 3?

A) ($7,104)

B) $864

C) $7,104

D) $6,096