The Lerril-Mynch Company, a brokerage firm, has earned $412,000 of commissions for the year, but has collected only $312,500 of that amount in cash. The company has also incurred business expenses of $316,000 but has paid only $292,000 of them. If Lerril-Mynch uses the accrual basis of accounting, which of the following amounts would their income statement report for net income?

A. $ 20,500

B. $ 75,500

C. $ 96,000

D. $120,000