Smiles Entertainment had the following accounts and balances at December 31:

Account	Debit			Credit
Cash	$	11,400
Accounts Receivable		2,280
Prepaid Insurance		2,960
Supplies		1,280
Accounts Payable				$	5,700
Common Stock					4,700
Retained Earnings					1,040
Service Revenue					8,400
Salaries Expense		640
Utilities Expense		1,280
Totals	$	19,840		$	19,840

Using the information in the table, calculate the company's reported net income for the period.

Multiple Choice

$5,060.

$4,420.

$6,480.

$1,380.