Sue's Geological Consulting maintains its records on a cash basis. During this past year, Sue collected $42,000 in consulting fees and paid $14,000 in expenses. Depreciation expense totaled $2,000. Accounts receivable increased $1,500, supplies increased $4,000, and accrued liabilities increased $2,500. What would Sue's net income be on an accrual basis?

1.$34,000

2.$18,000

3. $29,000

4.$23,000