On January 1, Year 1, May Company purchased office equipment that cost $35,000 cash. The equipment was delivered under terms FOB shipping point, and transportation cost was $5,000. The equipment had a five-year useful life and a $12,000 expected salvage value. Assume that May Company earned $35,000 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 $10,000. What is the companys net income (loss) for Year 3?