Stow-away Storage Ltd. started the year with total assets of $130,000 and total liabilities of $85,000. During the year, the business recorded $92,000 in service revenues, $45,500 in expenses, and paid dividends of $5,500.The net income reported for the year was

1. $41,000.

2. $45,000.

3. $52,000.

4. $46,500