Romeo Co follows ASPE. On Romeo Co's cash flow statement (indirect method) for Year 1, cash flows from operating activities was shown as $154,000. The statement included the following items: depreciation on equipment of $60,000; impairment of goodwill of $82,000; and cash dividends paid of $10,000. Based on the information given above, Romeo Co's net income for year 1 was

$214,000

$84,000

$12,000

$176,000