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3. Mr. Jason Stone operates a small drugstore as an individual proprietor. During the 3 past year, his books were not properly kept. He asks you, as a CPA, to give him some advice concerning the earnings of his business during the calendar year 2004. A review of his bank accounts and a diary of financial data reveal the information presented below: Deposits made during 2011 per bank statements totaled $226,000. Deposits include investments made by Mr. Shea as well as a loan he obtained from the bank for $25,000. Disbursements during 2011 per bank statement totaled $185,000. Included are personal withdrawals of $15,000 and payments on debt of $10,000. Net equity of Jason Stone at January 1, 2011 was determined to be $45,000. Net equity of Jason Stone at December 31, 2011 was determined to be $75,000. During 2011, funds invested by Jason Stone in the business amounted to $6,500. 6 Based upon the net worth method, net income for the year ended December, 2011 was A. $35,000 B. $38,500 C. $40,000 D. $42,000